Hawaii Disability Insurance laws & compensation compliance analysis

Hawaii Disability Insurance: What you need to know

Under the Hawaii Temporary Disability Insurance Law (TDI Law), virtually all Hawaii employers are required to furnish disability insurance that provides employees with replacement income when they are disabled by non-job-related accidents or illnesses (HI Stat. Sec. 392-1 et seq.). (Workers' compensation covers job-related injuries.)
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An employer may adopt one or more of the following methods of providing temporary disability insurance benefits:
• By purchasing insurance, called an “insured” plan, from an authorized insurance carrier;
• By adopting a sick leave policy, called a “self-insured” plan, which must be approved by Hawaii’s Disability Compensation Division (Division) (A self-insured employer pays benefits directly to its disabled employees, and as a self-insurer, the employer must show proof of financial solvency and ability to pay benefits.); and/or
• By a collective bargaining agreement that contains sick leave benefits at least as favorable as required by the TDI Law (HI Stat. Sec. 392-41).
The employer may pay for the entire cost of providing temporary disability insurance (TDI) coverage or share the cost equally with the employees eligible for coverage.
To be eligible for benefits, a claimant must have been employed for 20 or more hours in each of at least 14 weeks and earned wages of at least $400 during the 52 weeks immediately preceding the first day of disability (HI Stat. Sec. 392-25). Employees must have performed services within two weeks of the beginning of the disability (HI Stat. Sec. 392-6). There is a one-week waiting period before benefit payments begin (HI Stat. Sec. 392-24). A claimant must file a certification of disability from a doctor, dentist, ...

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