If you’re a Hawaii employer looking to protect both your business and your team, you’re in the right place. At Beyond, we provide the essential information you need to understand how workers’ compensation works and how to stay compliant.
What does workers' compensation cover?
Workers’ compensation provides medical care and partial wage replacement to employees who are injured or become ill due to work-related duties. Depending on the case, it can also include rehabilitation services and benefits for permanent impairment or death benefits for eligible dependents. In most situations, this system also limits an employer’s exposure to civil lawsuits for covered workplace injuries.
Who needs to provide coverage in Hawaii?
If you operate a business in Hawaiʻi and have one or more employees, you generally must carry workers’ compensation insurance. Hawaiʻi law also applies a presumption of coverage—unless the work is specifically excluded under the statute or you can establish the worker is not covered under the applicable legal tests.
Common exemptions include:
- Work performed in a religious, charitable, or educational nonprofit in a voluntary and unpaid capacity
- Students working for their school in exchange for tuition, room, board, or other remuneration
- Clergy (ministers, priests, rabbis, etc.) in the course of ministerial duties
- Domestic/household workers if cash pay is less than $225 during the current calendar quarter and each completed quarter of the preceding 12-month period
- Certain commission-only roles, including licensed real estate salespersons/brokers, and other specific commission-based occupations listed by statute
- Certain sports officials (as defined by the law)
- Certain business owners/executives who meet specific ownership thresholds (for example, qualifying corporate officers or qualifying LLC members)
Even when someone falls into an excluded category, employers may be able to elect voluntary coverage for added protection.
How can employers purchase a workers' comp policy?
Hawaiʻi employers typically secure workers’ compensation in one of these ways:
Buy a policy from an insurer authorized to write workers’ compensation coverage in Hawaiʻi
Self-insure by demonstrating the financial ability to pay benefits (subject to approval)
In some situations, post approved security to guarantee payment of benefits
Important: employees generally cannot be required to pay for workers’ compensation insurance costs.
What if an employer doesn’t have coverage?
Failing to maintain required workers’ compensation coverage can lead to serious enforcement. Under Hawaiʻi law, an uninsured employer may be assessed a civil penalty of the greater of $500 or $100 per employee per day for each day the failure continues, and the State may seek an injunction to stop ongoing operations until compliance is met. In addition, Hawaiʻi law treats failure to secure coverage as a misdemeanor in certain circumstances. For the most up-to-date enforcement details, consult Hawaiʻi’s workers’ compensation statutes and DLIR guidance.
What should employees do after a workplace injury?
If an employee is hurt on the job, they should report the incident to a supervisor as soon as possible and seek appropriate medical care.
Employer reporting requirement: When an injury causes an absence from work for one day or more or requires medical treatment beyond ordinary first aid, the employer must file a report with the Disability Compensation Division within seven working days after the employer has knowledge of the injury.
If the employer does not file the report, the employee may file Form WC-5 (Employee’s Claim for Workers’ Compensation Benefits) with the Disability Compensation Division.
Employers are also required to post the official “Notice to Employees” and to provide injured employees with the state brochure “Highlights of the Hawaii Workers’ Compensation Law” within the required timeframe.
Helpful resources for Hawaii employers
Why it matters
Workers’ comp isn’t just a legal requirement—it’s a vital safety net. It ensures that your employees get care and support when they need it most, and it protects your business from legal risk. If you’re unsure where to start, Beyond offers guidance, resources, and tools to help you stay compliant and confident.
