Hawaii Workers' Compensation Laws: Benefits, Deadlines, and Your Rights

Hawaii requires virtually every employer to carry workers' compensation insurance. If you are injured at work, you receive no-fault medical care and partial wage replacement without having to prove your employer was negligent, and in exchange you generally give up the right to sue your employer in civil court.

Is workers' comp required in Hawaii?

Yes, workers' compensation is mandatory in Hawaii for any employer with one or more employees. This is one of the broadest thresholds in the country. The Hawaii Disability Compensation Division (DCD), a branch of the Department of Labor and Industrial Relations (DLIR), administers the program. Employers must secure coverage either through a licensed private insurer or through an approved self-insurance arrangement.

An employer who fails to secure coverage is liable for a penalty of not less than $500, or $100 for each employee for every day the failure continues, whichever is greater, and after 14 days of default may be enjoined from carrying on business anywhere in the state under HRS 386-123. If your employer defaults and you do not receive prompt and proper compensation through no fault of your own, the state special compensation fund pays your award in full, and the fund is then reimbursed by and subrogated against the defaulting employer under HRS 386-56. An uninsured employer does not leave you without benefits.

Hawaii is not a monopolistic-fund state, meaning employers purchase coverage from private insurers rather than from a state fund. The DCD's primary role is adjudicating disputes, approving settlements, and overseeing compliance rather than acting as an insurer. Most claims are handled directly between the injured worker, the employer, and the insurer, with the DCD stepping in when disputes arise.

Benefits you can receive

Workers injured in Hawaii are entitled to several categories of benefits. Medical benefits cover all reasonable and necessary treatment related to the work injury, with no copays or deductibles for the worker.

Wage replacement begins after a 3-day waiting period. Temporary Total Disability (TTD) pays 66 2/3% of your average weekly wage (AWW), up to a maximum that the DCD adjusts annually. HRS 386-31(b) pays TTD for the duration of the disability "but not including the first three calendar days thereof," and Hawaii law contains no provision paying those first three days retroactively if the disability turns out to run long.

Temporary Partial Disability (TPD) applies when you can return to work in a limited capacity but earn less than before; the benefit makes up a portion of the wage difference. Permanent Partial Disability (PPD) compensates for lasting impairment that does not prevent all work, often calculated using a schedule tied to specific body parts or a percentage of whole-body impairment. Permanent Total Disability (PTD) provides ongoing benefits if you are permanently unable to perform any gainful work.

Death benefits are available to surviving dependents if a work injury causes death. Vocational rehabilitation services may also be available to help injured workers return to the workforce.

Deadlines: reporting your injury and filing a claim

Two separate deadlines govern every Hawaii workers' compensation case, and missing either can jeopardize your claim.

First, you should report the injury to your employer as soon as possible. Your employer is then required by law to file a report with the DCD within 7 working days of learning about the injury. Prompt reporting protects your right to benefits and allows the employer and insurer to begin evaluating your claim quickly. A significant delay in reporting can give the insurer grounds to dispute the claim.

Second, HRS 386-82 bars the right to compensation unless a written claim is made to the DCD director within 2 years after the date the effects of the injury became manifest, and within 5 years after the date of the accident or occurrence that caused the injury. The "manifest" standard is important for occupational diseases or conditions that develop gradually, because the clock starts when you knew or should have known the condition was work-related, not necessarily on the exact date of the accident.

Those two limits do not apply to certain latent occupational illnesses. HRS 386-82 exempts claims for injury caused by compressed air, or by occupational exposure to arsenic, asbestos, benzol, beryllium, zirconium, cadmium, chrome, lead, fluorine, or another mineral or substance with carcinogenic properties, or to X-rays, radium, ionizing radiation, or radioactive substances. Those claims are instead barred only if a written claim is not made within 2 years after you knew the injury was proximately caused by, or resulted from the nature of, the employment. If a disease surfaced long after the exposure that caused it, do not assume the 5-year limit has ended your claim.

If you are uncertain when your limitations period began, speaking with a workers' compensation attorney promptly is advisable. Missing the deadline will generally bar your claim entirely.

Choosing your doctor

Hawaii lets the injured worker choose the treating physician rather than forcing you onto an employer-approved panel or an insurer's managed care network. That choice carries a geographic limit that matters a great deal in an island state. Under HRS 386-21(b), you may select any physician or surgeon who is practicing on the island where the injury was incurred.

If the services of a specialist are indicated, you may select any physician or surgeon practicing anywhere in the State. Selection of a specialist practicing outside Hawaii requires authorization from the director, and is available only where no comparable medical attendance within the State is available. Once you procure a physician's services, you must give your employer proper notice of your selection within a reasonable time after treatment begins.

This right to choose your physician is meaningful because your treating doctor's opinions about causation, disability rating, and work restrictions carry significant weight throughout the claims process. If the insurer disagrees with your treating doctor's conclusions, it may request an independent medical examination (IME), but your doctor's records remain central to your case.

If the emergency nature of the injury requires immediate attention and you cannot make a selection, or you tell your employer you do not wish to select, the employer selects the physician; that does not take away your right to select your own doctor afterward for continued care. If you later wish to change to another physician or surgeon, HRS 386-21(b) allows it "in accordance with rules prescribed by the director," so follow the DCD's procedure rather than simply switching and document the change. Keep copies of all medical records and bills related to your work injury, as these form the foundation of your claim.

Can you sue your employer? The exclusive-remedy rule

Workers' compensation is the exclusive remedy for work injuries in Hawaii. This means that, in most circumstances, your right to receive workers' comp benefits is your only avenue of recovery against your employer, and you cannot also file a personal-injury lawsuit seeking additional damages such as pain and suffering.

The exclusive-remedy rule is the foundation of the no-fault bargain: workers get guaranteed benefits without proving fault, and employers get protection from open-ended civil liability. Hawaii follows this framework fully.

The exception written into the statute itself is narrow. HRS 386-5 excludes all other liability of the employer for a work injury "except for sexual harassment or sexual assault and infliction of emotional distress or invasion of privacy related thereto, in which case a civil action may also be brought." That is the only exception stated in the exclusive-remedy provision, and nothing in it turns on whether your employer carried insurance.

You may also pursue claims against third parties who contributed to your injury, such as a negligent equipment manufacturer, a careless driver who caused a work-related crash, or a property owner where the accident occurred. HRS 386-8 preserves that right where someone other than your employer, or another employee of your employer acting in the course of employment, is legally liable for the injury. Third-party claims are separate from workers' comp and do not affect your right to receive workers' comp benefits, though any recovery is subject to the employer's right of reimbursement for compensation it has paid.

If your employer is uninsured, your route is still the workers' compensation system rather than a tort suit. Report the coverage violation to the DCD, which investigates them, and the special compensation fund pays the compensation you are owed when your employer defaults, as described above.

If you were hurt at work in Hawaii

If you suffer a work-related injury or occupational illness, taking the right steps promptly protects your rights.

Report the injury to your employer in writing as soon as possible and keep a copy for yourself. Note the date, time, and circumstances of the injury, along with any witnesses. Your employer should give you a claim form and information about the insurer; if they do not, contact the DCD directly.

Seek medical care right away. Because Hawaii lets you choose your own doctor, you can go to any licensed physician practicing on the island where you were hurt, or to a specialist practicing anywhere in the state if a specialist is indicated. Make sure your doctor knows the injury is work-related from the first visit, as that notation matters for your claim.

File a formal written workers' compensation claim with the DCD before the 2-year limitations period expires, and in any event within 5 years of the accident. Do not assume your employer or their insurer will file on your behalf. Keep copies of all medical records, bills, wage statements, and correspondence.

If your claim is disputed, your benefits are reduced, or you are offered a settlement, consult a licensed workers' compensation attorney in Hawaii before agreeing to anything. Attorneys in this field generally work on contingency, and the DCD must approve any settlement. For cross-reference, see our overview of Workers' Compensation Laws by State and, for retaliation concerns, your state's employment-law pages.

This article is general legal information, not legal advice. Workers' compensation rules vary by state and change, and benefit amounts and deadlines depend on the specific facts. For advice about a specific claim, consult a licensed workers' compensation attorney in Hawaii.

Related pages: Workers' Compensation Laws by State

More Hawaii Laws

• Hawaii At-Will Employment Laws
• Hawaii Car Accident Laws
• Hawaii Final Paycheck Laws
• Hawaii Slip and Fall Laws
• Hawaii Statute of Limitations