Hawaii Workers Compensation Guide

Workers Compensation Requirements in Hawaii

Hawaii requires workers' compensation for all employers with one or more employees. Hawaii also uniquely requires Temporary Disability Insurance (TDI) — a separate program that covers non-work-related disabilities. Both workers' comp and TDI are required in Hawaii. The Disability Compensation Division of the Department of Labor and Industrial Relations oversees both programs.

Workers Comp Rates in Hawaii

The average rate of approximately $2.08 per $100 of payroll is a statewide blended average — actual rates vary significantly by job classification.

For example, an employer with $1 million in payroll at the average rate of $2.08 per $100 would pay approximately $20,800 annually before experience modification adjustments.

Average Workers Comp Rates by City in Hawaii

What Makes Hawaii Unique

Hawaii is one of only five states (along with California, New Jersey, New York, and Rhode Island) that requires Temporary Disability Insurance (TDI) — coverage for disabilities that are NOT work-related. This dual system means Hawaii employers must provide both workers' comp (for work injuries) and TDI (for non-work disabilities). Understanding the distinction between these programs is essential for Hawaii employers.

Three Mandates, One Division: Workers’ Comp, TDI, and Prepaid Health Care

When people search for the “Hawaii workers’ comp division,” they usually mean the Disability Compensation Division (DCD) of the Department of Labor and Industrial Relations. What most employers do not realize until their first payroll is that the DCD administers three separate employer mandates, not one — and Hawaii is the only state that includes an employer health insurance requirement among them.

2026 maximums from the DLIR Disability Compensation Division’s published 2026 wage base figures. TDI and PHC are purchased separately from workers’ comp, usually from different carriers.

The practical consequence: a Hawaii employer quoting labor cost needs three lines, not one. A new hire working 20 hours a week triggers workers’ comp on day one, TDI once the quarterly earnings test is met, and PHC after four consecutive weeks. Workers’ comp is the only one of the three that is entirely employer-paid.

Who Is Exempt From Hawaii Workers’ Comp

Hawaii covers every employer with one or more employees, but the exclusions are specific and narrower than many owners assume:

• Domestic workers paid less than $225 in cash per calendar quarter. A housekeeper paid $100 a week is well over that and must be covered.
• Real estate salespeople and brokers paid solely by commission.
• Certain stockholder-officers, depending on ownership percentage (the thresholds are 25% and 50% depending on role).
• Unpaid volunteers for religious, charitable, educational, or nonprofit organizations; students working for room, board, or tuition; and ordained clergy paid solely on commission.

Anyone outside these categories is covered, and an employer may voluntarily cover an excluded person. Family members on payroll are not excluded simply because they are family.

The Presumption of Compensability Changes How Claims Are Fought

Hawaii’s workers’ comp law has carried a statutory presumption in favor of the injured worker since its origins in 1915. The employer bears the burden of producing substantial evidence that a claimed injury is not work-related. Most states put the initial burden on the worker.

Two consequences for employers:

• “Deny and see” does not work in Hawaii. A denial without specific contrary evidence is unlikely to hold, and every week of disputed TTD accrues while it is decided.
• Evidence has to be collected at the time of injury, not after a claim is contested: a written incident account, witness names, the time and location, and what the worker was doing. That record is the only thing that can meet the substantial-evidence standard months later.

The Worker Chooses the Doctor

Unlike states where the employer or insurer directs initial care, in Hawaii the injured employee is entitled to choose the treating physician. An employer cannot require a worker to use a company clinic.

That shifts where the employer’s leverage lies. You cannot control who treats; you can control how fast the claim is reported, how clearly light-duty work is offered, and whether modified work exists when the treating physician releases the worker with restrictions. In Hawaii, a written, specific light-duty offer is worth more than a preferred-provider list, because it is the one cost lever the employer still holds.

Reporting: The WC-1 and the Seven-Working-Day Deadline

An employer must file Form WC-1 (Employer’s Report of Industrial Injury) within seven working days of learning of any work injury that causes an absence of one day or more, or that needs medical treatment beyond ordinary first aid. The employer must also give the injured worker a copy of the completed WC-1.

“Working days” helps a little, but the trigger is knowledge, not a formal claim. A supervisor who hears about the injury has started the clock for the business. Train supervisors to pass injury reports up the same day.

Penalty for No Coverage: $100 per Employee per Day

An uninsured Hawaii employer faces a penalty of the greater of $500 or $100 per employee for every day without coverage. The DCD’s own illustration is two employees uncovered for five days: $1,000.

The per-day structure is what makes it expensive. Five employees uncovered for 30 days after a missed renewal is $15,000 before a single claim is filed — and if someone is injured during the gap, the employer is directly liable for the benefits as well. A lapsed policy caught at renewal is usually a penalty problem; a lapsed policy caught after an injury is an existential one.

Renewal gaps are the common cause

Most uninsured periods in Hawaii are not decisions to go without coverage. They are cancellations for non-payment or renewals that were never bound. Set a calendar reminder 45 days before expiration and confirm in writing that the renewal has been bound, not just quoted.

Hawaii’s Workers’ Comp Market and HEMIC

Hawaii has no monopolistic state fund. Coverage is bought from private carriers, and the largest writer is HEMIC (Hawaii Employers’ Mutual Insurance Company), a private mutual established under 1996 state legislation that now writes more than a quarter of the Hawaii market. It competes with national carriers rather than replacing them.

Because Hawaii’s employer base is small and concentrated in construction, hospitality, and healthcare, the number of carriers actively competing for any one class can be limited. For construction and other higher-hazard classes, getting at least two quotes — typically HEMIC plus one national carrier — is the realistic minimum to know whether a renewal is priced fairly.

Hawaii 2026 Figures at a Glance

Source: DLIR Disability Compensation Division, 2026 maximum weekly wage base figures (published December 2025). Figures are set annually.

Workers Comp Benefits in Hawaii

Hawaii workers' comp provides temporary total disability at 66.67% of average weekly wage. TDI (non-work-related) provides 58% of average weekly wages for non-work disabilities.

Employee Rights in Hawaii

Hawaii workers can choose their own physician. Disputes are handled by the Labor and Industrial Relations Appeals Board with access to circuit courts.

How to Reduce Workers Comp Costs in Hawaii

Hawaii employers must manage both workers' comp and TDI — understanding which program applies to each claim is important. Safety programs reduce workers' comp costs. TDI costs are managed through return-to-work programs for non-work-related disabilities. Working with a broker experienced in Hawaii's dual disability system is valuable.

Frequently Asked Questions

Is workers' comp insurance required in Hawaii?

Yes. Hawaii requires workers' compensation coverage for employers with 1 or more employees. Hawaii employers must also carry Temporary Disability Insurance (TDI) alongside workers' comp — both are mandatory and administered by the same division.

How much does workers' comp cost in Hawaii?

The statewide blended average in Hawaii is approximately $2.08 per $100 of payroll, though actual rates vary significantly by job classification and claims history — high-risk classifications like construction and roofing pay substantially more than clerical or retail classifications.

Who regulates workers' comp in Hawaii?

the Disability Compensation Division of Hawaii's Department of Labor and Industrial Relations oversees Hawaii's workers' compensation system, handling claims administration, compliance, and dispute resolution between employees, employers, and insurers.

What happens if a Hawaii employer doesn't carry required workers' comp coverage?

Operating without required coverage exposes a Hawaii employer to civil penalties, potential personal liability for injury costs, and loss of the exclusive remedy protection that normally shields compliant employers from direct lawsuits over workplace injuries.

What is the Hawaii workers’ comp division?

It is the Disability Compensation Division (DCD) of Hawaii’s Department of Labor and Industrial Relations. The DCD administers workers’ compensation, Temporary Disability Insurance, and the Prepaid Health Care Act — three separate employer mandates handled by one division.

What are the workers’ comp policy requirements in Hawaii?

Every employer with one or more employees must carry workers’ compensation, with narrow exclusions such as domestic workers paid under $225 in cash per quarter and commission-only real estate agents. Hawaii employers must also provide Temporary Disability Insurance and, for employees working 20 or more hours a week for four consecutive weeks, health insurance under the Prepaid Health Care Act.

What is the penalty for not having workers’ comp in Hawaii?

The greater of $500 or $100 per employee for every day without coverage. Five employees uncovered for 30 days is $15,000, and the employer is also directly liable for benefits on any injury during the gap.

Can a Hawaii employer choose the doctor for a work injury?

No. In Hawaii the injured employee is entitled to choose the treating physician. The employer’s main cost levers are prompt reporting and a clear, written light-duty offer that fits the physician’s restrictions.

How long does a Hawaii employer have to report a work injury?

Seven working days from learning of an injury that causes absence of one day or more or needs treatment beyond first aid, using Form WC-1. The employer must also give the worker a copy.

What is the maximum workers’ comp benefit in Hawaii for 2026?

$1,240 per week, based on a maximum weekly wage base of $1,859.91. Temporary total disability pays 66⅔% of average weekly wages up to that maximum, after a three-day waiting period.

Can Hawaii employees be charged for workers’ comp, TDI, or health insurance?

Not for workers’ comp, which the employer pays entirely. For TDI, employees can be charged up to half the cost, capped at 0.5% of wages ($7.50 a week maximum in 2026). For Prepaid Health Care, the employee share is capped at 1.5% of wages or half the premium, whichever is less.

Does Hawaii presume a workplace injury is covered?

Yes. Hawaii law presumes a claim is compensable, and the employer must produce substantial evidence that it is not work-related. That is why documenting the incident at the time it happens matters more in Hawaii than in most states.

Is HEMIC the Hawaii state fund?

No. HEMIC is a private mutual insurer established under 1996 state legislation. It is the largest workers’ comp writer in Hawaii with more than a quarter of the market, but it competes with other carriers and Hawaii has no monopolistic state fund.

The information on this page is provided for general informational purposes only and reflects estimated industry averages and state requirements as of 2026. Workers compensation laws, rates, and requirements change frequently and vary significantly by employer size, industry, and job classification. Rate estimates shown are blended averages and do not represent actual quotes for any specific employer. Always consult a licensed workers' compensation insurance professional and your state's workers' compensation regulatory agency for current, employer-specific information.