Hawaii

 

Although there are common elements to the many state regulations, there are also differences in the way each state designs its plan and coordinates it with other leave types. Here’s what you need to know about state disability in Hawaii.
 

Temporary Disability Insurance

What is Hawaii Temporary Disability Insurance (HI TDI)?

The Hawaii Temporary Disability Insurance (TDI) law requires employers to provide partial “wage replacement” insurance coverage to their eligible employees for non-work related injury or sickness, including pregnancy. The state does not pay TDI benefits; instead, it requires every employer covered by the law to provide benefits to eligible employees through insured or self-insured plans.

When did HI TDI begin?

HI TDI was enacted in 1969, and the law is currently administered by the Disability Compensation Division (DCD), a division of the Department of Labor and Industrial Relations. The DCD is responsible for appeals, hearings, cost review, vocational rehabilitation review, compliance and program support. The TDI insurance carrier or the self-insured employer is responsible for day to day claim management.

Who is eligible?

Covered employees must have 14 weeks of covered employment when they were paid for 20 hours or more and earned at least $400 in the first 52 weeks prior to first day of disability.  
  

How is this program funded?

Employers can (but are not required to) have their employees contribute to the cost of providing disability benefits. An employer may deduct one- half the premium cost, capped at 0.5% of the state’s average weekly wage (for 2020, maximum weekly deduction is $5.60 based on the 1,119.44 state average weekly wage).

Employees may be required to provide at least one-half of plan costs, plus any additional costs not chargeable to employees.  

How can employers provide TDI benefits?

Employers may use any of the following methods to provide TDI benefits:
 

  1. By purchasing a TDI policy from an authorized insurance carrier.
  2. By adopting a “self-insured” plan, which must be approved by the DCD.
  3. By a collective bargaining agreement that contains sick leave benefits at least as favorable as required by the TDI Law.
What are the benefits to the employee?

Covered individuals will receive a weekly benefit that varies depending on income. A covered employee’s weekly benefits under the program are generally calculated as:  

  • 58% of his or her average weekly wage
  • The maximum weekly benefit for 2020 is capped at $650
  • Benefits payable for less than one week will be paid in increments of one-fifth of the weekly benefit
  • Benefits are payable from the eighth day of disability (there is a seven-consecutive-day waiting period)
  • A maximum of 26 weeks of benefit payments during a benefit year
Are TDI benefits taxable?

Hawaii does not assess a State disability tax (SDI) and does not collect a disability tax payment since employers are required to obtain coverage. 
  

Does HI TDI provide job protection?

Hawaii does not provide job protection.
  

Other Hawaii state paid family and medical leave resources
Insurance products are issued by The Lincoln National Life Insurance Company, Fort Wayne, IN, Lincoln Life & Annuity Company of New York, Syracuse, NY, and Lincoln Life Assurance Company of Boston, Dover, NH. The Lincoln National Life Insurance Company does not solicit business in New York, nor is it licensed to do so. Product availability and/or features may vary by state. Limitations and exclusions apply.