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Hawai'i Mandatory Employer Insurances
Understanding Hawaii's employer insurance requirements
Hawaii is the only state in the country with an employer health coverage mandate stricter than (and exempt from) the Affordable Care Act. Add mandatory TDI and Workers' Compensation requirements, and Hawaii employers carry legal obligations that most national HR teams and benefit providers aren’t fully prepared for.
Mana navigates all three of these requirements for local Hawaii businesses and mainland companies with Hawaii-based employees. Our compliance guidance is included at no cost with every employer account
❤️🩹 Group Health Insurance - Prepaid Health Care (PHC) Ac
What the PHC Act Requires
What the PHC Act Requires
What the PHC Act Requires
Hawaii's Prepaid Health Care (PHC) Act, enacted in 1974 and exempt from ERISA, requires all private employers to provide DLIR-approved health coverage to any employee working 20 or more hours per week for four consecutive weeks. This applies regardless of company size. Most mainland plans are NOT automatically approved for Hawaii.
Key PHC Act Rules
What the PHC Act Requires
What the PHC Act Requires
- 50% employer contribution minimum
- Employee share cannot exceed 1.5% of their monthly gross wages (calculated individually per employee)
- DLIR-approved plan required
- HC-5 waiver required annually for any employee who declines coverage
- Applies to mainland companies with even one Hawaii-based remote employee
What Mana Provides
What the PHC Act Requires
What Mana Provides
- PHC Act compliance audit (eligibility, hours tracking, wage cap calculations)
- Side-by-side quotes from all the major health insurance carriers in Hawai'i
- DLIR plan approval navigation
- HC-5 waiver process setup and annual renewal management
- Mainland employer DLIR submission support
- Annual compliance review
🛡️ Temporary Disability Insurance (TDI)
What TDI Requires
Statutory vs. Enhanced TDI
Statutory vs. Enhanced TDI
Hawaii TDI is mandatory for all private employers - no exceptions.
It provides partial wage replacement when an employee cannot work due to a non-work-related illness, injury, or pregnancy (including recovery before and after childbirth).
Non-compliance carries DLIR fines, back-benefit liability, and potential civil action from affected em
Hawaii TDI is mandatory for all private employers - no exceptions.
It provides partial wage replacement when an employee cannot work due to a non-work-related illness, injury, or pregnancy (including recovery before and after childbirth).
Non-compliance carries DLIR fines, back-benefit liability, and potential civil action from affected employees.
2026 maximum benefit: $871/week Maximum benefit period: 26 weeks
Statutory vs. Enhanced TDI
Statutory vs. Enhanced TDI
Statutory vs. Enhanced TDI
Statutory TDI meets the DLIR minimum.
Enhanced TDI plans provide higher benefits, shorter elimination periods, or longer benefit durations. A meaningful differentiator when competing for talent.
We also offer Short-term disability and Long-term disability plans that layer above TDI for employees who want more complete income protection.
What Mana Provides
Statutory vs. Enhanced TDI
What Mana Provides
- TDI carrier selection and DLIR notification
- Statutory and enhanced plan options
- W-2 reporting preparation
- Short-term disability (STD) and long-term disability (LTD) layered above TDI
- Enrollment & claims assistance
⚠️ Workers' Compensation
Workers' Compensation — Required for Every Hawaii Employer
Workers' Compensation is mandatory for all Hawaii employers with one or more employees — part-time or full-time. It covers medical expenses and lost wages when an employee is injured on the job. Mana coordinates this coverage through our licensed sister agency, making a warm introduction and staying involved to ensure your complete coverage picture is coordinated.
Penalties for Non-Compliance
Non-compliance with any of Hawaii's three mandatory employer insurance requirements carries real consequences:
- PHC Act: $250 per offense, DLIR investigation, and back-premium liability for the employer
- TDI: DLIR fines, back-benefit liability, and potential civil action by affected employees
- Workers' Comp: Up to $10,000 fine, criminal charges for repeated violations, and personal liability for any workplace injury costs
If you're unsure whether any of these are in place or compliant, a free 15-minute call with Mana will give you a clear answer and a path forward.
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