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Department of Labor and Industrial Relation
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The Disability Compensation Division (DCD) of the Department of Labor and Industrial Relations prepared the WebPages to help you understand three important labor laws that DCD administers: the Workers' Compensation (WC) law, the Temporary Disability Insurance (TDI) law, and the Prepaid Health Care (PHC) law. All employers with one or more employees, whether working full-time or part-time, are directly affected.
The information provided here is intended to assist employers, employees and insurance carriers to acquire a general understanding of the WC, TDI and PHC laws. For comprehensive details, please refer to the laws, Chapter 386 (WC), Chapter 392 (TDI) and Chapter 393 (PHC) of the Hawaii Revised Statutes.
WORKERS' COMPENSATION (WC)
Your safety and well being on the job are important to your employer. However, accidents and illnesses can arise from work and when they do, you are covered under the WC law. The Hawaii Territorial Legislature adopted the first Workers' (Workmen's) Compensation law, which took effect on July 1, 1915. The WC law in essence required the employer provide certain benefits without regard to the fault of the employer and prohibited an employee from filing civil actions against the employer for work-related injuries or illnesses. The WC law was Hawaii's first "no-fault" legislation.
Under present law, the employee sustaining a work-related injury or illness is entitled to medical treatment, wage loss benefits, permanent disability indemnity, disfigurement and death benefits. Any employer, including the State and County governments, employing one or more workers is required to provide WC coverage.
TEMPORARY DISABILITY INSURANCE (TDI)
The TDI law was enacted in 1969, which requires employers to provide partial "wage replacement" insurance coverage to their eligible employees. This means that if you are unable to work because of an off-the-job sickness or injury and you meet the qualifying conditions of the law, you will be paid disability or sick leave benefits to partially replace the wages you lost. TDI, however, does not include medical care.
PREPAID HEALTH CARE (PHC) ACT
Originally enacted in 1974, the Hawaii PHC Act was the first in the nation to set minimum standards of health care benefits for workers. The purpose is to insure that the Hawaii employees are provided with adequate medical coverage. Preempted in October of 1981 by the Federal Employee Retirement Income Security Act of 1974 (ERISA), the PHC Act was reinstated effective March 1, 1983.
The PHC Act requires employers provide group health care coverage for their eligible Hawaii employees to insure protection against the high cost of medical and hospital care for nonwork-related illness or injury.
Branches/Sections of this Division
For information on the branches of this Division, please go to CONTACTS & OFFICE INFORMATION. |
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