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Known for its breathtaking landscapes and vibrant culture, Hawaii is a tropical haven with a distinct appeal. From the world-famous beaches of Waikiki to the volcanoes of the Big Island, the Aloha State owns a wealth of natural wonders and rich history.
With industries rooted in tourism, fishing and agriculture, Hawaii offers various opportunities for businesses to flourish. When it comes to protecting your business and employees, choosing the right workers' compensation insurance is essential.
Workers' compensation is a state-mandated insurance program for employers with one or more employees. It’s designed to provide employees who suffer work-related injuries or illnesses with medical treatment and indemnity benefits.
Full, part-time, permanent and temporary workers are considered employees under Hawaii workers’ compensation law.
Without workers’ compensation, the cost of a work-related injured or ill employee’s medical treatment could become the responsibility of your business.
The State of Hawaii Department of Labor and Industrial Relations is responsible for administering the workers’ comp law in Hawaii. The law requires employers with one or more employees to be covered by an active workers’ compensation insurance policy.
Workers’ comp coverage can be obtained through a partner like EverPeak Insurance. The Disability Compensation Division can approve self-insured requests.
Policies include protection for full and part-time workers.
Some exemptions from workers’ comp in Hawaii may include, for example:
Workers' compensation covers a range of work-related injuries and illnesses, including physical injuries resulting from an accident and occupational diseases that may develop over time due to job conditions.
Hawaii workers’ comp insurance provides three types of benefits for work injuries:
The weekly compensation rate is 66 ⅔% of the employee’s average weekly wage, not to exceed a maximum amount set by the state law.
Find more information on Hawaii workers’ compensation benefit rates.
In the event of a work-related injury or illness:
Employees in Hawaii should report their injury to their employer immediately.
The employee should immediately seek medical attention.
Once notified of the injury, employers should file a report of the accident within seven working days to their workers' compensation insurance partner.
If the workers’ compensation claim is accepted, an injured employee may begin to receive workers’ compensation benefits, such as lost wages and medical benefits.
Following their recovery, a worker is expected to resume work safely. If an employee is unable to return to their previous position or any other type of work due to their work-related injury, they may be entitled to permanent total disability benefits.
In Hawaii, injured workers may obtain treatment from a physician of their choice. They may change physicians once but must notify their employer’s insurance partner before making the change. Any other change in physician will require approval from the insurance partner first. The physician may also refer the injured employee to other specialists with the insurance partner's approval.
If an employee or employer wishes to dispute a claim, they can contact the Disability Compensation Division for assistance.
Generally, employers in Hawaii with one or more employees must carry workers' compensation insurance or qualify for self-insurance. Compliance with this requirement is essential to protect both the employer and employees.
When selecting a workers' compensation insurance provider, consider factors such as the provider's experience in the industry, financial stability, coverage options, claims process, customer service, and cost.
We recommend requesting multiple quotes and comparing the offerings before making a decision.
Covering your business and employees with a trusted insurance partner — like EverPeak — brings peace of mind so you can focus on your bottom line.
Employers who fail to provide workers’ compensation coverage will be charged a fine of $100 for each employee for every day of non-coverage.
In most cases, employees in Hawaii are barred from suing their employers for work-related injuries or illnesses. The workers' compensation system provides an exclusive remedy, meaning that employees typically cannot file a lawsuit against their employers. Instead, they must pursue a workers' compensation claim to receive benefits for their injuries or illnesses.
Generally, independent contractors aren’t covered by workers' compensation insurance in Hawaii. Workers' compensation laws typically apply to employees rather than independent contractors.
However, it's important to note that the classification of a worker as an independent contractor or an employee can be complex, and misclassification can lead to legal disputes. If unsure whether an independent contractor should be treated as an employee, seek legal guidance.
Ideally, the incident should be reported immediately or within a few days of the occurrence. Prompt reporting helps ensure the necessary steps are taken to initiate the workers' compensation claims process.