Hawaii workers compensation requirements decide exactly when you must carry coverage, who counts toward the threshold, and what it costs to skip it. This guide breaks down the Hawaii workers compensation requirements in plain English — the employee count that triggers the mandate, who is exempt, the penalty for going without, and how to get covered. All figures are from Hawaii sources, verified as of June 2026.
In This Hawaii Guide:
Is Workers’ Comp Required in Hawaii?
Yes, workers compensation insurance is required in Hawaii for all employers as soon as they hire their first employee, with no minimum employee threshold; coverage must be maintained for all full-time, part-time, temporary, and seasonal workers
Hawaii Workers’ Comp Requirements at a Glance
Here are the exact Hawaii workers compensation requirements every employer should know:
| Employees that trigger the mandate | 1 |
| Which workers count | All employees count toward the threshold including full-time, part-time, temporary, and seasonal workers; coverage is required from the very first employee hired regardless of industry |
| Who is exempt | Sole proprietors with no employees, partners, corporate officers who own 50 percent or more of the company, independent contractors (properly classified), volunteer workers for religious organizations and nonprofits, ordained ministers and priests and rabbis performing ministerial duties, domestic workers earning less than 225 per calendar quarter, and students working at schools in exchange for room and board rather than wages |
| Owners & officers | Sole proprietors and partners may elect to cover themselves voluntarily but are not required to carry coverage on themselves; corporate officers who own 50 percent or more of the company may exclude themselves from coverage by filing an exemption with the Disability Compensation Division |
| Penalty for going without | Employers who fail to carry required workers compensation insurance face a civil fine of 100 per employee per day without coverage or a minimum penalty of 500, whichever is greater; the state may also issue stop-work orders; failure to secure payment of compensation as required is a misdemeanor under HRS 386-121; employers are also personally liable for all medical costs and lost wages of any injured employee during the uninsured period |
| Monopolistic state? | No — buy from private carriers |
| State fund | Hawaii has a competitive state fund; the Hawaii Employers Mutual Insurance Company (HEMIC) was created by the state legislature and serves as both a competitive carrier and the assigned-risk provider (insurer of last resort) for employers who cannot obtain coverage in the private market |
How to Get Workers’ Comp Coverage in Hawaii
Hawaii employers can obtain workers compensation coverage through private insurance carriers licensed in Hawaii, through HEMIC (the competitive state fund and assigned-risk provider), or by applying for self-insurance authorization through the Disability Compensation Division; rates are developed using NCCI classification codes
Private market: YES
What Workers’ Comp Covers in Hawaii
Workers’ compensation is a no-fault system: an injured employee gets benefits without having to prove the employer did anything wrong, and in exchange gives up the right to sue for most workplace injuries. A typical Hawaii policy pays for medical treatment tied to a work injury, part of the wages lost while the worker recovers, longer-term disability benefits if the injury is permanent, and death benefits to a family.
It also includes employers-liability coverage, which protects the business if an injury still leads to a lawsuit. That trade-off is the practical heart of the Hawaii workers compensation requirements: the coverage exists to keep one bad injury from sinking both the worker and the business.
Employees vs. Independent Contractors in Hawaii
The most common way owners get the Hawaii workers compensation requirements wrong is by assuming a worker is an “independent contractor” who does not count. State agencies look at how the work is actually controlled, not the label on a 1099. If Hawaii decides a contractor was really an employee, the business can owe back premiums and penalties as if coverage should have been in place all along.
When you are close to the employee threshold, confirm each worker’s status with your state board before you decide you are exempt.
Other Hawaii workers’-comp rules: Hawaii is one of a small number of states that also requires employers to provide Temporary Disability Insurance (TDI) under HRS Chapter 392, which covers non-work-related illness or injury; Hawaii also requires Prepaid Health Care (PHC) coverage for employees working 20 or more hours per week for 4 consecutive weeks; real estate salespeople and brokers working solely on commission are generally exempt from workers compensation coverage;
the same Disability Compensation Division administers workers compensation, TDI, and PHC laws
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Understanding Hawaii Workers Compensation Requirements
The Hawaii workers compensation requirements exist to make sure injured employees get medical care and lost wages without having to sue. For most owners, the Hawaii workers compensation requirements come down to one number: the employee count that triggers the mandate, shown in the table above.
Once you hit that count, Hawaii workers compensation requirements apply whether you planned for them or not, and the penalty for going without is real. If any part of the Hawaii workers compensation requirements is unclear for your business, your state workers’-comp board can confirm the threshold, the exemptions, and how to get covered.
Next step: Once you know what your business in Hawaii actually needs, comparing quotes from several carriers takes only a few minutes. Many owners do this right after they understand their state and trade requirements.
Frequently Asked Questions
Is workers’ comp required in Hawaii?
Yes, workers compensation insurance is required in Hawaii for all employers as soon as they hire their first employee, with no minimum employee threshold; coverage must be maintained for all full-time, part-time, temporary, and seasonal workers
What is the penalty for not having workers’ comp in Hawaii?
Employers who fail to carry required workers compensation insurance face a civil fine of 100 per employee per day without coverage or a minimum penalty of 500, whichever is greater; the state may also issue stop-work orders; failure to secure payment of compensation as required is a misdemeanor under HRS 386-121;
employers are also personally liable for all medical costs and lost wages of any injured employee during the uninsured period
Who is exempt from Hawaii workers’ comp?
Sole proprietors with no employees, partners, corporate officers who own 50 percent or more of the company, independent contractors (properly classified), volunteer workers for religious organizations and nonprofits, ordained ministers and priests and rabbis performing ministerial duties, domestic workers earning less than 225 per calendar quarter, and students working at schools in exchange for room and board rather than wages
Official Hawaii Sources & Resources
- Hawaii Disability Compensation Division, Department of Labor and Industrial Relations: https://labor.hawaii.gov/dcd/
- Hawaii Workers’ Comp Statute: https://law.justia.com/codes/hawaii/title-21/chapter-386/
- U.S. Department of Labor — Workers’ Comp: dol.gov
- U.S. Small Business Administration: sba.gov
These Hawaii workers compensation requirements were last verified against official sources in June 2026. Rules and penalties change — confirm the current figure with your state workers’-comp board or a licensed agent.
More Hawaii Business Insurance Guides
Disclaimer: This guide is informational only and is not insurance, legal, or tax advice. Business Insure Guide is an independent educational resource, not an insurance agency or carrier. Coverage needs, legal requirements, and prices vary by business, profession, and state and change over time. Always verify the exact requirement and price with a licensed insurance agent and your state before you buy.