If you're injured on the job in Hawaii, your employer must provide workers' compensation coverage. This includes extensive medical benefits for surgical, hospital, emergency, and rehabilitation services, with direct payment to medical providers. You'll also receive disability benefits, such as temporary total disability (two-thirds of your average weekly wages), permanent total disability, and permanent partial disability based on the extent of your impairment. Additional benefits include vocational rehabilitation, disfigurement payments, and death benefits for dependents. Employers must comply with strict regulations, including providing the "Hawaii Workers' Compensation Law (Highlights)" brochure within three working days of your injury report. For more details on what's covered and how the process works, continue to explore the specific requirements and benefits.

Injured on the Job? What Hawaii Employers Must Cover Under Workers' Comp

If you're injured on the job in Hawaii, your employer is required to provide extensive coverage under the state's workers' compensation law. This coverage, mandated through workers' compensation insurance in Hawaii, includes several key benefits. You are entitled to medical benefits to cover the costs of your treatment and recovery. Additionally, you may receive temporary or permanent disability benefits to compensate for lost wages due to your injury. Other benefits can include disfigurement payments, death payments if the injury is fatal, and vocational rehabilitation to help you return to work or shift to a new job. These provisions are designed to support you financially and medically while you recover from a work-related injury[4][5].

Employer Obligations in Hawaii

In Hawaii, employers have stringent obligations when it comes to workers' compensation insurance. You are required to provide coverage for all employees, including full-time, part-time, permanent, and temporary workers, with limited exemptions such as sole proprietors, partners, and corporate officers with at least 50% ownership[3][5].

As an employer, you must secure workers' compensation coverage, which can be done through business insurance in Hawaii or self-insurance. You are also mandated to post and maintain a printed statement about benefit rights and claims procedures in accessible locations for your employees. Upon notice of an injury, you must furnish the injured employee with a copy of the "Highlights of the Hawaii Workers' Compensation Law" within three working days and file an "Employer's Report of Industrial Injury" with the Hawaii Disability Compensation Division within seven working days[1][3]. Failure to comply can result in fines or legal actions.

Mandatory Coverage

Mandatory Coverage in Hawaii is stringent and thorough. As an employer in Hawaii, you are required to provide workers' compensation insurance for all your employees, including full-time, part-time, permanent, and temporary workers, unless they fall under specific exemptions outlined in state law[2][3][5].

This insurance is essential as it covers medical costs, lost wages, ongoing care, and even death benefits for work-related injuries or illnesses. Failure to comply can result in significant penalties, including fines of up to $100 per day, and you would be liable for all medical care costs and lost wages if an employee is injured on the job[4].

Insurance Options

When it comes to workers' compensation insurance in Hawaii, employers have several options to guarantee they are adequately covered. You can purchase a policy from private insurance companies authorized to transact workers' compensation in Hawaii. Companies like Employers and TechInsurance offer these services, allowing you to compare quotes and select a policy that fits your business needs[2][5,.

Alternatively, if you are not qualified to purchase through private insurers, you can buy workers' compensation insurance from the Hawaii Employers' Mutual Insurance Company (HEMIC), which is the state's designated workers' compensation insurer[5].

Another option is to self-insure, where you cover your own health care and rehabilitation expenses rather than relying on an insurance company. This route, however, is typically reserved for larger or more financially stable employers[5].

Premium Costs

After selecting the appropriate workers' compensation insurance option for your business in Hawaii, the next step is to understand the associated premium costs. Hawaii has some of the highest workers' compensation insurance rates in the country, with costs about 78% higher than the national average. As of 2025, the average monthly premium for workers' compensation insurance in Hawaii is around $165, making it the second most expensive state for this coverage[5%.

Despite these high rates, there is a proposed 3.5% decrease in loss costs for the voluntary market, effective January 1, 2025, based on improved loss experience and economic recovery[1].

Insurance companies can adjust filed rates by up to 25% using policy credits and debits, and additional discounts may be available based on payroll size and claims experience[4]. Understanding these factors can help you navigate the premium costs of workers' compensation insurance in Hawaii.

Workers' Compensation Benefits

In Hawaii, workers' compensation benefits are designed to provide financial and medical support to employees who suffer work-related injuries or illnesses. If you are injured on the job, workers' compensation insurance in Hawaii covers the cost of all necessary medical treatment related to the injury. You may also receive disability benefits, including temporary total disability, permanent partial disability, and permanent total disability payments. These benefits are calculated as a percentage of your average weekly wages, up to a specified maximum.

Medical Benefits

Medical benefits are a cornerstone of workers' compensation in Hawaii, guaranteeing that you receive the necessary care if you are injured on the job. These benefits cover all medical treatment related to your work injury, including surgical and hospital services, as well as any necessary supplies and equipment. This incorporates a wide range of care, from emergency room visits and ambulance rides to long-term medication and physical therapy[2][5/.

If you suffer a work injury, your medical benefits will be handled directly by the insurer, who will pay the medical bills to the service provider. However, employers may opt for a deductible on medical benefits, in which case they will be liable for the deductible amount[3]. This guarantees thorough medical care without financial burden to you as the injured employee.

Disability Benefits

If you're injured on the job and unable to work, disability benefits under Hawaii's workers' compensation law are designed to provide you with financial support. These benefits include several types of disability payments. For temporary total disability, you may receive weekly benefits equal to two-thirds of your pre-injury average weekly wages, subject to maximum and minimum limits set by the state[5].

For permanent total disability, the benefits are also calculated at two-thirds of your average weekly wages, with no maximum duration limit. Specific severe injuries, such as the loss of limbs or permanent paralysis, are automatically considered permanent total disabilities[4][5].

Additionally, you may be eligible for permanent partial disability benefits if your injury leaves you with a lasting impairment, which are calculated based on the extent of your impairment and the affected body parts[5].

Employer Compliance Requirements

To guarantee that employees receive the benefits they are entitled to under Hawaii's workers' compensation law, employers must adhere to specific compliance requirements. You must ascertain that all employees, with limited exemptions, are covered by workers' compensation insurance in Hawaii. When an employee reports a work-related injury, you have to file an "Employer's Report of Industrial Injury" (WC-1) with your workers' compensation insurance carrier and submit it to the Department of Labor and Industrial Relations within seven working days to avoid penalties of up to $5,000[2][4].

You are also required to post and maintain a printed statement about benefit rights and claims in places accessible to employees. Additionally, you must provide the injured employee with a copy of the brochure, "Hawaii Workers' Compensation Law (Highlights)," within three working days of the injury notice[2][4].

Penalties for Non-Compliance

Failure to comply with Hawaii's workers' compensation requirements can result in significant penalties. If you, as an employer, fail to carry the mandatory workers' comp insurance, you may face a penalty of at least $500 or $100 per employee per day, whichever is greater[5].

Non-payment of compensation as ordered by a final decision or judgment can also incur penalties. If compensation is not paid within 31 days, you may be required to pay an additional 20% of the unpaid amount[3].

Role of Atlas Insurance Agency

Maneuvering Hawaii's complex workers' compensation landscape can be intimidating, but partnering with Atlas Insurance Agency can significantly simplify the process. As the largest and oldest insurance agency in Hawaii, Atlas offers customized workers' compensation insurance solutions tailored to the state's regulatory landscape. They provide policies that fit the specific needs of your business, ensuring you comply with Hawaii's strict reporting and posting requirements.

Atlas Insurance Agency has extensive experience in workers' compensation, offering access to competitive products and services from numerous local and national providers. Their expertise includes risk and safety management, claims handling, and rehabilitation services, all of which are essential for managing workers' compensation in Hawaii. By choosing Atlas, you gain a trusted local partner that can help you navigate the intricacies of workers' compensation insurance in Hawaii.