Short answer: Yes. Hawaii requires any employer with one or more employees—full-time, part-time, permanent or temporary—to provide workers' compensation unless a listed exclusion in the statute applies. There is no state fund. Purchase a policy from an authorized carrier or become a Director-approved self-insurer. Employees cannot pay any part of the premium.
Who must provide coverage
The Disability Compensation Division's About Workers' Compensation page and FAQ both state that any employer, other than those excluded in HRS §386-1, having one or more employees must provide WC coverage. The law, enacted in 1915, is meant to provide wage-loss compensation and medical care for work-related injuries without regard to employer fault, and it generally bars employees from suing the employer for those injuries.
Listed exclusions
The FAQ's exclusion list includes:
- Voluntary or unpaid workers for a religious, charitable, educational or nonprofit organization
- Student workers performing services for a school, university or college club in return for room, board or tuition
- Duly ordained, commissioned or licensed ministers, priests or rabbis
- Domestic workers earning less than $225 cash per calendar quarter
- Domestic workers of public welfare recipients
- Certain 25% stockholders and all 50% stockholders
- Real estate salespersons and brokers paid solely on commission
An employer may elect to cover excluded employees. Federal law, not Hawaii WC, covers federal employees and workers in fishing, maritime and longshoring activities.
How to secure coverage
You may:
- Purchase insurance from a carrier authorized to transact workers' compensation in Hawaii, or
- Become a self-insured employer approved by the Director of Labor and Industrial Relations after showing solvency and ability to pay benefits (Form WC-21).
Hawaii has no State Fund. The employer pays the full premium; employees cannot be assessed any portion of it.
Reporting a work injury
When a work injury causes more than one day's absence or medical treatment beyond first aid, the employer must inform DCD within seven working days of knowledge of the injury and give the worker a copy of the completed Employer's Report of Industrial Injury (WC-1). The Division's new-employer materials warn that late or non-filing can bring a penalty of up to $5,000. Wage-loss benefits, when payable, are generally two-thirds of average weekly wage from the fourth day of disability for as long as a physician certifies disability.
Uninsured employers
If an employer has no WC coverage, the injured employee may contact the Investigation Section in Honolulu or a neighbor-island DLIR district office for assistance. Going without coverage also exposes the employer to the civil and criminal consequences built into chapter 386.
The presumption and civil-action bar
Hawaii's workers' compensation law places a statutory presumption on employers: once a claim for a covered work injury is made, the employer must produce substantial evidence to the contrary to rebut it. In exchange, the employee is generally prohibited from filing a civil action against the employer for that work-related injury or illness. That trade-off is why coverage from day one matters even for a single part-time hire.
Self-insurance paperwork
Self-insured employers must furnish proof of financial solvency and ability to pay benefits and must be approved by the director. Form WC-21 is the application for self-insurance authorization. Most small businesses will find a commercial policy simpler than posting security and meeting ongoing self-insurance conditions.
Neighbor-island access
Injured workers can get help from the Investigation Section in Honolulu or from a Department of Labor and Industrial Relations district office on a neighbor island when an employer has no coverage. Keeping a policy in force avoids that path and the penalties that follow an uninsured claim.
Independent contractors and secondary liability
Under chapter 386, an independent contractor who hires workers to perform a contract can be treated as the employer of those workers, including employees of subcontractors, with primary and secondary liability ordered along the contracting chain. Hiring entities that use layers of subcontractors should collect certificates from each layer rather than assuming the top-tier policy covers everyone on site.
Bottom line
One employee is enough to trigger Hawaii workers' compensation. Confirm exclusions carefully before assuming you are outside the Act. See our workers' compensation insurance overview.
Questions? Contact Alishahi Insurance or call (877) 711-4545. See insurance in Hawaii.
Frequently asked questions
Is workers' comp required in Hawaii?
Yes, for any employer with one or more employees unless the work falls under a statutory exclusion.
Does Hawaii have a state workers' comp fund?
No. Employers buy coverage from authorized private carriers or seek Director-approved self-insurance.
Can Hawaii employees be charged for workers' comp premiums?
No. The employer must pay the full cost.
How soon must a Hawaii employer report a work injury?
Within seven working days of knowledge when the injury causes more than one day's absence or treatment beyond first aid.
Are domestic workers covered by Hawaii workers' comp?
Domestic workers earning less than $225 cash per calendar quarter are excluded; higher-earning domestic workers are generally covered.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.