Hawaii

Hawaii - Compensation & Benefit Legislation

HAWAII - AASHOWME

Demonstrates www.BenefitsReview.com™ site. Illustrates insurance carriers' coverages within the State.

HAWAII - ADOPTED CHILD HEALTH CARE MANDATE

OBRA 1993 (Federal) requires group health plans to honor medical and child support orders. Also, plans must treat adopted children like biological children covered by the plan, and plans are precluded from applying pre-existing condition exclusions to an adopted child where no such exclusion applies to a newborn biological child. Health plans that covered the cost of pediatric vaccines as of May 1, 1993, and fail to continue that level of coverage, will be subject to an excise tax penalty applicable to plans that fail to meet the health care continuation coverage requirements under OBRA 1993.

Mandatory coverage of birth of adopted child is included in the state's newborn health care mandate.

Preventive care for children: yes, to age 5.

(Hawaii Rev. Stat. Sections 31:10A-103, 431:10A-115, 431:10A-115.5, 431-10A-116.5, 431:10A-206, 431L-6)

HAWAII - ALCOHOLISM & DRUG ABUSE

Mandatory coverage.

Minimum yearly inpatient coverage: 30 days inpatient or 60 days partial hospitalization (2 days partial equals 1 day inpatient; 2 days outpatient equals 1 day inpatient).

Minimum yearly outpatient coverage: 12 visits and 30 physician or psychologist visits.

Minimum lifetime visits: 2 treatment sessions. (Hawaii Rev. Stat. Sections 431M-2, 431M-4)

HAWAII - CAFETERIA PLAN TAX LAWS

State income tax, unemployment insurance tax on salary reduction: For state Unemployment Insurance purposes, the total amount of employees' salary reductions and any cash that the employee has the option to receive (whether or not the employee chooses the cash option) must be treated as wages. Employer contributions are not taxable.

HAWAII - CONTINUATION OF COVERAGE CONVERSIONS

Events Triggering Continuation of Coverage:

Death: No.

Job Termination: No.

Reduction of Hours: No.

Divorce or Legal Separation: No.

Medicare Eligibility: No.

Other Provisions: If employee is hospitalized or prevented from working due to sickness, 3 months continuation coverage paid for by employer.

Early Termination of Continuation of Coverage: None. (Hawaii Rev. Stat. Section 393-15)

HAWAII - COORDINATION OF BENEFITS

State reports no statutory requirements.

HAWAII - COST-OF-LIVING

ERI's Relocation Assessor™ is a recommended source for U.S./Canadian cost-of-living data and U.S. Automobile Cost Survey.

HAWAII - DRUG TESTING AND EMPLOYEE ASSISTANCE BENEFITS

Who is Covered by Statute: Any person, agency, employer, or other entity requesting an individual to submit to a drug test.

Applicant Testing: State has no statutory requirements.

Employee Testing: State has no statutory requirements.

How Test Results are Used: State has no statutory requirements.

Enforcement of Statutes: Enforcement is by private civil suit; state also may pursue action for injunctive relief.

Employee Remedies: Employees may recover actual damages.

Employer Penalties: Violators are subject to civil fines of $1,000 - $10,000 per violation, plus costs and attorneys' fees.

Who Pays for Testing: All costs, including confirmation testing, shall be paid by employer.

Employee Assistance Benefits: State has no statutory requirements.

Other Requirements: State has no statutory requirements.

(Hawaii Rev. Stat. Sections 329B-1 thru 329B-8.)

HAWAII - GROUP HEALTH CODE ADDITIONS (MANDATED)

Alcoholism and Drug Addiction: These illnesses are included in prepaid health care plans qualifying under this chapter and receive benefits as such. Inpatient and outpatient benefits for the diagnosis and treatment of substance abuse, including but not limited to alcohol and drug addiction, are specifically stated and must not be less than the benefits for any other illness, except as provided in this subsection. Medical treatment of substance abuse is not limited or reduced by restricting coverage to the mental health or psychiatric benefits of a plan. However, any psychiatric services received as a result of the treatment of substance abuse may be limited to the psychiatric benefits of the plan. (Hawaii Rev. Stat. Section 393-7( c)(6)(A).) Prepaid health care plans qualifying under this chapter also must include outpatient benefits provided by a physician, psychiatrist or psychologist, regardless of place of service; provided the plan allows the contractor to provide benefits in its own facility and utilize its own staff, or contract for the provision of these benefits, or authorize the patient to utilize outside services and reimburse the expenses at a rate not more than that for services utilizing the contractor's own facility and staff. (Hawaii Rev. Stat. Section 393-7( c)(6)(B).) Detoxification and acute care benefits in a hospital or other private or public treatment facility also is included. These facilities must be appropriately licensed, certified, or approved by the Department of Health. Three inpatient admissions per calendar year for alcohol abuse are allowed and no more than 7 days per admission. Three admissions per calendar year are allowed for other substance abuse, not to exceed 21 days per admission. (Hawaii Rev. Stat. Section 393-7( c)(6)( C).) Prepaid health care plans are not required to make reimbursements for care furnished by government agencies and available at no cost to a patient, or for which no charge would have been made if there were no health care plan coverage. (Hawaii Rev. Stat. Section 393-7 ( c)(6)(D).)

Diagnostics: Qualified plans shall include diagnostic laboratory services, x-ray films, and radio therapeutic services necessary for diagnosis or treatment of injuries or diseases. (Hawaii Rev. Stat. Section 393-7( c)(4).)

Disclosure of Plan Terms: Insurers must provide prospective users as well as individuals already enrolled in plans with written disclosure of coverages and benefits, including information on coverage principles and any exclusions or restrictions on coverage. Information supplied must be current, and understandable. In addition, information must be available prior to issuance of a policy and must be supplied upon request during a policy term. (H3785, 1995) (Hawaii Rev. Stat. Sections 431.10, 432.1, 432D.)

Handicapped Dependents: Coverage for dependent children cannot be terminated while a child is incapable of employment due to mental retardation or physical handicap and chiefly dependent on the insured. (Hawaii Rev. Stat. Section 431: 10-212.)

Hospitals: Prepaid health care plans qualified under this chapter shall provide inpatient care for at least 120 days of confinement in each calendar year covering accommodations, regular and special diets; general nursing services; use of operating room, surgical supplies, anesthesia services, and supplies; drugs, dressings, oxygen, antibiotics, and blood transfusion services. Outpatient care must cover the use of outpatient hospitals and facilities for surgical procedures or medical care of an emergency and urgent nature. (Hawaii Rev. Stat. Section 393-7( c)(1).)

Mammography Screening: Policies must cover costs of screening as described. (Hawaii Rev. Stat. Sections 431:10A - 116(4), 432:1-605.)

Maternity: Qualified plans shall include maternity benefits if the employee was covered by the prepaid health care plan for nine consecutive months prior to delivery. (Hawaii Rev. Stat. Section 393-7 ( c)(5).) Health policies that provide benefits for maternity related services must provide hospitalization coverage for a mother and her newly born child for a minimum of 48 hours following a vaginal birth and for a minimum of 96 hours following a Caesarean section. However, health policies that provide coverage for postpartum maternity care to a mother and her newly born child in the home are not required to provide for a minimum of 48 or 96 hours of inpatient hospital care unless determined medically necessary by the attending physician. (S 2658, 1995) (Hawaii Rev. Stat. Sections 431:10A, 432, 432(b), 432( c).)

Medical Benefits: Qualified plans shall include necessary home, office, and hospital visits by a licensed physician; intensive medical care while hospitalized; and medical or surgical consultations while confined. (Hawaii Rev. Stat. Section 393-7( c)(3).)

Newborns: All accident and sickness policies or disability insurance providing family coverage on an expense incurred basis must provide benefits for newborns or newborn infant adoptees from the moment of birth for treatment of medically diagnosed congenital defects and birth abnormalities. (Hawaii Rev. Stat. Sections 431:10A-115, 206.) (H896, 1995.)

Pediatric Care: Policies covering children of the insured must provide coverage for child health supervision services from the moment of birth through age five years. Services include 12 visits at stated intervals for physical exams, developmental assessments, immunizations and lab tests. (Hawaii Rev. Stat. Sections 431:10A-115.5, 206.5.)

Providers: Optometrists, dentists, and psychologists: Costs for services must be covered if the provider is licensed, the service is within the provider's scope of services, and the service is covered by the policy. (Hawaii Rev. Stat. Sections 431, 10A-116, 207) Clinical social workers, licensed in the practice of social work and certified in clinical work by a recognized national organization, are authorized to participate in the prescription and performance of inpatient, outpatient, and other forms of mental, alcoholism, or drug dependence treatments and services. (S656, 1997)

Scope of Coverage: Hawaii, through the 1974 Prepaid Health Care Act (PHCA), is the only state to require employers to provide health insurance to their employees. Every employer who pays monthly wages to a regular employee in an amount equal to at least 86.67 times the minimum hourly wage, as determined by regulation of the Director of Labor and Industrial Relations, must provide prepaid coverage to those employees. (Hawaii Rev. Stat. Section 393-11.) This mandate, however, does not cover part-time workers who work fewer than 20 hours per week, government employees, the self-employed, and low wage earners whose monthly earnings are less than 86.67 times the minimum hourly wage. Employer responsibility to provide coverage commences after an employee has worked four consecutive weeks. At the earliest time thereafter, coverage may be provided with the prepaid health care plan contractor selected. (Hawaii Rev. Stat. Section 393-14.) Employers have two options in meeting the mandated benefits requirements. Under the first option, employers provide an extensive package of medical, hospital, and laboratory services that meets standards specified in the PHCA. The benefit package must be equivalent to the most prevalent plan provided by the major fee-for-service provider in the state or the major HMO in the state. (Hawaii Rev. Stat. Sections 393-7, 393-129(a)(1)-(a)(2).) Employers offering this plan are not required to contribute the cost of dependent coverage. The second option is to provide a more limited state approved benefits package. Employers who select this option must pay at least half the cost of dependent coverage. Under PHCA, employers and employees share premium costs for employee coverage. The employee contribution is limited to half the premium costs of 1.5 percent of the employee's gross wages, whichever is less. Employees must elect the insurance unless they have comparable coverage from another source or waive coverage for religious reasons. (Hawaii Rev. Stat. Section 393-13.)

Surgical Benefits: Qualified plans shall include surgical services performed by a licensed physician, after-care visits for a reasonable period, and anesthesiologist services. (Hawaii Rev. Stat. Section 393-7( c)(2).)

HAWAII - GROUP HEALTH FOR SMALL EMPLOYERS

State reports no statutory requirements.

HAWAII - GROUP LIFE CODE ADDITIONS

Employer required to pay part of premium: Yes.

Percent of employees who must elect coverage (if employees pay part of premium): 75%.

Percent of employees who must be covered if employer pays all of premium: 100%.

Minimum number of employees in group plan: 10.

Employer prohibited as beneficiary: Yes.

Grace period (days): 30.

Mandatory conversion: Yes.

Other provisions: none.

(Hawaii Rev. Stat. Sections 431:10D-202, 431:10D-213)

HAWAII - HOLIDAYS

January 1, Washington's Birthday (or 3rd Monday in February), Memorial Day (or last Monday in May), July 4, Labor Day (or 1st Monday in September), Veterans Day, and December 25 are state holidays in all 50 states and in the District of Columbia. Other holidays under State law include: Martin Luther King's birthday (or 3rd Monday in January), Thanksgiving. Other: Any holiday designated by the President or the Governor. If any holiday falls on Sunday, the following Monday is a holiday; if any holiday falls on Saturday, the preceding Friday is a holiday. (Hawaii Rev. Stat. Sections 8-1, 8-1.5, 8-2, 8-4, 8-4.5, 8-5.5, 8-7 through 8-11)

HAWAII - IMMIGRATION (PREVAILING WAGE POLICY)

See U.S. Federal General Administrative Letter 1-2000

HAWAII - JURY DUTY & WITNESS TIME OFF

Employer Restriction For Discharging Employee For Taking Leave For Jury Service: Yes.

Remedies and Penalties: Violator is guilty of a petty misdemeanor. Employee can bring civil action within 90 days of discharge for lost wages, reinstatement and reasonable attorney fees. Damages recovered shall not exceed 6 weeks' lost wages.

Other Requirements: None reported. (Hawaii Rev. Stat. Sections 79-14, 612-25.)

Employer Restriction For Discharging Employee For Taking Leave to be a Witness: Yes.

Other Requirements: None reported.

HAWAII - LEAVES OF ABSENCE

Employers Subject to Leave Laws: Employers with 100 or more employees.

Criteria for Eligibility: Must be employed for 6 consecutive months.

Maximum length of leave: 4 weeks per calendar year.

Paid Leave: Employer has discretion.

Acceptable Reasons for Leave: Birth/adoption of child; care for child, spouse, or parent with serious health condition.

Employment Guarantees After Leave: Entitled to reinstatement in the position held prior to the leave or equivalent position.

Use of Vacation or other Time-off Benefits: Employer may require employee to use any other paid leave before receiving the leave benefits.

Certification Required: Employer may require certification of birth/adoption of a child.

Effect Of Leave on Other Benefits: All benefits continue to accrue while on leave and are restored at the end of leave.

Effect of Seniority Accrual During Leave: Seniority benefits continue to accrue while on leave.

Minimum Requirements for Notification to Employer: Reasonable notice, if possible, is required.

Conditions for Denial of a Request For Leave: State reports no statutory requirements.

(Hawaii Rev. Stat. Sections 398-1 - 398-10.)

See U.S. Federal Family and Medical Leave Act

HAWAII - LONG TERM DISABILITY CODE ADDITIONS

State does not require employer to provide long term disability benefits; although many employers do in order to remain competitive in hiring/retention of employees.

See LEAVES OF ABSENCE (above), WORKERS' COMPENSATION (below) and U.S. Federal Americans With Disabilities Act

HAWAII - MANDATED PROVIDERS

Optometrists, dentists, and psychologists. Mandatory coverage for telemedicine. (Hawaii Rev. Stat. Sections 431:10A-116, 431:10A-116)

HAWAII - MENTAL HEALTH CARE

Mandatory coverage.

Minimum yearly inpatient coverage: 30 days inpatient or 60 days partial hospitalization (2 days partial equals 1 day inpatient; 2 days outpatient equals 1 day inpatient).

Minimum yearly outpatient coverage: 12 visits and 30 physician or psychologist visits.

Minimum lifetime coverage: 2 treatment episodes. (Hawaii Rev. Stat. Section 431M-2, 431M-4)

HAWAII - MINIMUM WAGE

$5.75 per hour (effective January 1, 2002). $6.25 per hour (effective January 1, 2003).

An employee earning a guaranteed monthly compensation of $1,250 or more is exempt from the State minimum wage law.

See U.S. Minimum Wage

HAWAII - NEWBORN CARE MANDATE

Mandated care.

Preventive care for children: Yes, to age 5. (Hawaii Rev. Stat. Sections 31:10A-103, 431:10A-115, 431:10A-115.5, 431-10A-116.5, 431:10A-206, 431L-6)

HAWAII - NEW HIRE REPORTING

Who is required to report: All employers.

Who must be reported: All employees and rehires.

Exempt from reporting: No exemptions.

Form(s) to file: W-4 or equivalent

Filing deadline: Within 20 days of hire.

Employer information to be included: Name, address, and unemployment insurance account number.

Employee information to be included: Name, SSN, type of work performed, full or part time, number of hours employed per week, and date employee began work.

Penalty for failure to report: Fine of $25 per employee ($500if conspiracy).

(Hawaii Rev. Stat. Sections 383-94, 576D-1 et seq. as amended by Senate Bill No. 1266)

State of Hawaii

Department of Labor and Industrial Relations

Unemployment Insurance Division

September 1998

NOTICE TO EMPLOYERS REGARDING NEW HIRE REPORTING

Beginning October 1, 1998, the Hawaii Child Support Enforcement Agency (CSEA) will operate the State New Hire Reporting Directory which was mandated by the Federal Welfare Reform Act and Act 293, approved by the Governor on June 21, 1997.

From that date, employers must begin sending new hire reports directly to CSEA. DO NOT SEND ANY NEW HIRE REPORTS TO THE UNEMPLOYMENT INSURANCE DIVISION AFTER SEPTEMBER 30, 1998.

CSEA requires that newly hired employees be reported by mailing or faxing a copy of the employee's IRS Tax Withholding Form (Form W-4). Do not use the old Unemployment Insurance "report of New Hire" Form UC-BP-5A. New hires must be reported to CSEA within 20 days after the date that the employee starts employment. There is a penalty for failure to file a timely or accurate report of new hires.

New hire reports can be faxed to (808) 587-375 or mailed to:

Child Support Enforcement Agency (CSEA)

New Hire Reporting

680 Iwilei Road Suite 490

Honolulu, HI 96817

Additional information regarding new hire reporting options such as magnetic media, use of W-4 equivalent or facsimile forms, and special reporting options for multi-state employers can be obtained by contacting CSEA at (808) 587-3738. Call the Child Support Enforcement Agency immediately if you have any other questions as to your legal obligation to report new hires.

HAWAII - PARENTAL LEAVE

See U.S. Federal Family and Medical Leave Act

HAWAII - PRE-EXISTING CONDITIONS

State reports no statutory requirements.

See U.S. Federal Health Insurance Portability & Accountability Act

HAWAII - PROTECTED CLASSIFICATIONS

Age: Yes.

Race: Yes.

Color: Yes.

National Origin: Yes.

Ancestry: Yes.

Religion: Yes.

Sex: Yes.

Pregnancy: Yes.

Sexual Harassment: Yes.

(Haw. Rev. Stat. Sections 378-2, 378-3.)

HAWAII - SALARY SURVEY

ERI's Relocation Assessor™ is a recommended source for U.S./Canadian wages & salaries (covering 3,000 positions).

HAWAII - SHORT TERM DISABILITY CODE ADDITIONS

Covered Employers: 1 or more employees.

Employer Contribution: Cost of plan minus employee contribution.

Covered Employees: Earning $400 or more in wages in base period, been employed at least 14 weeks, and earned wages for 20 hours or more.

Employee Contribution: Half of plan cost up to 0.5% of employee's weekly wages.

Weekly Benefit Amount: Average weekly benefits range from $14 - $348.

Waiting Period: 7 consecutive days.

Coordinated with Workers' Compensation: Yes.

Responsible Agency:

Director of Labor and Industrial Relations

Disability Compensation Division

P.O. Box 3769

Honolulu, HI 96812

HAWAII - TERMINATION & SEVERANCE PAY

Date pay is due if employee is discharged: Next business day.

Date due if employee resigns: Payday.

Wages: Yes.

Vacation Pay: No.

Holiday: No.

Sick leave: No.

Severance: No. (Hawaii Rev. Stat. Section 388-3)

HAWAII - UNEMPLOYMENT TAX

Employer Contributions:

Tax Rate (%):

Standard: 5.4
Maximum: 5.4
Minimum: 0.2

Voluntary Contribution Provision: No. State reports no statutory requirements.

(Hawaii Rev. Stat. Section 383-66, 383-68.)

HAWAII - VACATION PAY

State reports no statutory requirements.

HAWAII - VOTING TIME OFF

2 consecutive hours while the polls are open, unless employee already has 2 consecutive hours off duty while the polls are open. (Hawaii Rev. Stat. Sections 11-95, 19-8.)

HAWAII - WORKERS' COMPENSATION

Private Employers: Mandatory as to all industrial employments. (Note: Employment in trade, occupation or profession, carried on by employer for pecuniary gain.)

Public Employers: Mandatory as to all public officials, elected or appointed. Covers public board members.

Exceptions: Volunteers of religious, charitable, or non-profit organizations. Domestics who earn less that $225 during each quarter in the preceding year. Unpaid corporate officers with 25% plus shares of corporation with no employees. Individual with 50 plus shares of corporation.

Special Coverage Provisions: Voluntary as to employments not defined as industrial.

(U.S. Chamber of Commerce, 1994 Analysis of Workers' Compensation Laws.)