Who Needs Workers' Comp in Hawaii?
Hawaii requires all employers to provide workers' compensation coverage under the Hawaii Workers' Compensation Law (HRS Chapter 386). This applies to all employees including part-time, temporary, and seasonal workers. Hawaii is unique in also requiring employers to provide Temporary Disability Insurance (TDI) and Prepaid Health Care, making it one of the most comprehensive employee protection states in the country.
Penalties for Non-Compliance
Hawaii penalties include fines up to $250 per day without coverage, plus a penalty equal to the premium the employer would have paid. Willful failure to provide coverage is a misdemeanor. Employers are personally liable for all injury costs and employees of uninsured employers can sue directly without workers' comp limitations on damages.
How Hawaii Rates Work
Hawaii uses NCCI class codes but has its own rate-setting process through the Hawaii Insurance Division. Hawaii tends to have higher workers' comp rates than the national average due to island geography, limited carrier competition, higher cost of medical care, and higher cost of living. Shopping multiple carriers is especially important in Hawaii to find competitive pricing.
Hawaii's Additional Insurance Requirements
Beyond workers' comp, Hawaii requires employers to provide Temporary Disability Insurance (TDI), which covers employees for non-work-related injuries and illnesses, and Prepaid Health Care, which requires employers to provide health insurance to employees working 20+ hours per week. These requirements make Hawaii unique among states and add to the total cost of employee coverage.
Common Hawaii Class Codes
| Code | Description | Risk Level |
|---|---|---|
| 8810 | Clerical Office Employees | Low |
| 8742 | Outside Salespersons | Low |
| 9012 | Hotels NOC | Medium |
| 9101 | Restaurant NOC | Medium |
| 0042 | Landscape Gardening & Maintenance | Medium |
| 5403 | Carpentry NOC | Medium-High |
| 5551 | Roofing — All Kinds | High |