Hawaii workers comp requirements decide exactly when an employer must carry coverage, who counts toward the threshold, and the penalty for going without. This guide breaks down the Hawaii workers comp requirements in plain English. (Injured instead of hiring? See our Hawaii settlement and claim guides linked below.) All figures are from Hawaii sources, verified as of June 2026.
Hawaii at a Glance
| Required at | 1 employee(s) |
| Which workers count | Coverage is triggered by having one or more employees of any kind — full-time, part-time, permanent, temporary, or seasonal all count. There is no minimum payroll, waiting period, or small-business exemption, and no special construction-only rule (the one-employee mandate applies to all industries from the first employee). |
| Who is exempt | Excluded from mandatory coverage under HRS 386-1: sole proprietors and business partners; LLC members who individually hold a distributional interest of at least 50 percent; corporate officers/stockholders who own at least 50 percent (certain 25 percent stockholders also excluded); domestic workers earning less than 225 dollars per calendar quarter; casual labor not in the course of the employer’s trade or business; real estate salespersons/brokers paid solely by commission; voluntary/unpaid workers for religious, charitable, educational, or nonprofit organizations; duly ordained ministers, priests, or rabbis; and qualifying student workers. |
| Penalty for going without | Under HRS 386-123, an employer that fails to secure required coverage is liable for a civil penalty of 100 dollars per employee per day, or 500 dollars, whichever is greater. If the employer remains in default for 14 days, the director may obtain an injunction barring the employer from doing business anywhere in the State (effective stop-work order). Fraudulent failure to secure compensation can also carry misdemeanor exposure under the chapter. |
| Monopolistic state? | No — private carriers |
In This Hawaii Guide:
Is Workers’ Comp Required in Hawaii?
Yes — Hawaii requires workers’ compensation coverage for every employer with one or more employees, and coverage must be in place from the first day the first employee starts work.
Hawaii Workers’ Comp Requirements at a Glance
Here are the exact Hawaii workers comp requirements every employer should know:
| Employees that trigger the mandate | 1 |
| Which workers count | Coverage is triggered by having one or more employees of any kind — full-time, part-time, permanent, temporary, or seasonal all count. There is no minimum payroll, waiting period, or small-business exemption, and no special construction-only rule (the one-employee mandate applies to all industries from the first employee). |
| Who is exempt | Excluded from mandatory coverage under HRS 386-1: sole proprietors and business partners; LLC members who individually hold a distributional interest of at least 50 percent; corporate officers/stockholders who own at least 50 percent (certain 25 percent stockholders also excluded); domestic workers earning less than 225 dollars per calendar quarter; casual labor not in the course of the employer’s trade or business; real estate salespersons/brokers paid solely by commission; voluntary/unpaid workers for religious, charitable, educational, or nonprofit organizations; duly ordained ministers, priests, or rabbis; and qualifying student workers. |
| Owners & officers | Sole proprietors, partners, and qualifying 50-percent owners/LLC members/corporate officers are excluded by default but the employer may voluntarily elect to cover them by adding them to a policy; excluded individuals can opt into coverage rather than being forced out. |
| Penalty for going without | Under HRS 386-123, an employer that fails to secure required coverage is liable for a civil penalty of 100 dollars per employee per day, or 500 dollars, whichever is greater. If the employer remains in default for 14 days, the director may obtain an injunction barring the employer from doing business anywhere in the State (effective stop-work order). Fraudulent failure to secure compensation can also carry misdemeanor exposure under the chapter. |
| Monopolistic state? | No — buy from private carriers |
| State fund | Hawaii has no government-run monopolistic state fund. HEMIC (Hawaii Employers’ Mutual Insurance Company) is a legislatively created private mutual insurer that serves as the state’s insurer of last resort and manages the assigned-risk pool, but it competes in the open market rather than being a mandatory state fund. |
How to Get Workers’ Comp Coverage in Hawaii
A Hawaii employer obtains coverage by buying a policy from any licensed private workers’ comp carrier (including HEMIC); employers who cannot get voluntary coverage can be placed through the assigned-risk pool managed by HEMIC; large qualified employers may apply to the DCD to self-insure. Rates are based on NCCI occupational 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.
Employees vs. Independent Contractors in Hawaii
The most common way employers get the Hawaii workers comp 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 law presumes a work-related claim is covered unless the employer proves otherwise (a strong claimant-favoring presumption under HRS 386-85). Hawaii also uniquely pairs workers’ comp with a separate mandatory Temporary Disability Insurance (TDI) program for non-work injuries and a Prepaid Health Care Act, so employers should confirm all three obligations. Many claimants and employers should confirm specifics with the DCD and a licensed Hawaii attorney.
Understanding Hawaii Workers Comp Requirements
The Hawaii workers comp requirements exist so injured employees get care and lost wages without having to sue. For most employers, the Hawaii workers comp 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 comp requirements apply whether you planned for them or not, and the penalty for going without is real.
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If any part of the Hawaii workers comp requirements is unclear, your state board can confirm the threshold, the exemptions, and how to get covered.
Need to get covered? If you are an employer in Hawaii shopping for a policy, our sister site compares small-business insurance, including workers’ comp. Compare business insurance options →
Frequently Asked Questions
Is workers’ comp required in Hawaii?
Yes — Hawaii requires workers’ compensation coverage for every employer with one or more employees, and coverage must be in place from the first day the first employee starts work.
What is the penalty for not having workers’ comp in Hawaii?
Under HRS 386-123, an employer that fails to secure required coverage is liable for a civil penalty of 100 dollars per employee per day, or 500 dollars, whichever is greater. If the employer remains in default for 14 days, the director may obtain an injunction barring the employer from doing business anywhere in the State (effective stop-work order).
Fraudulent failure to secure compensation can also carry misdemeanor exposure under the chapter.
Who is exempt from Hawaii workers’ comp?
Excluded from mandatory coverage under HRS 386-1: sole proprietors and business partners; LLC members who individually hold a distributional interest of at least 50 percent; corporate officers/stockholders who own at least 50 percent (certain 25 percent stockholders also excluded); domestic workers earning less than 225 dollars per calendar quarter; casual labor not in the course of the employer’s trade or business; real estate salespersons/brokers paid solely by commission;
voluntary/unpaid workers for religious, charitable, educational, or nonprofit organizations; duly ordained ministers, priests, or rabbis; and qualifying student workers.
Official Hawaii Sources & Resources
- Hawaii Disability Compensation Division (DCD), Hawaii Department of Labor and Industrial Relations: https://labor.hawaii.gov/dcd/home/aboutwc/
- Hawaii Workers’ Comp Statute: https://www.capitol.hawaii.gov/hrscurrent/vol07_ch0346-0398/HRS0386/HRS_0386-.htm
- U.S. Department of Labor — Workers’ Comp: dol.gov
- Insurance Information Institute: iii.org
These Hawaii workers comp 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 Workers’ Comp Guides
- Hawaii Workers’ Comp Settlements
- How to File a Hawaii Workers’ Comp Claim
- Workers’ Comp Guides for All 50 States
Disclaimer: This guide is informational only and is not legal, medical, or financial advice. Workers Comp Explained is an independent educational resource, not a law firm or insurer. Workers’ comp benefits, settlement values, deadlines, and requirements vary by state and by the specific facts of your injury and change over time, and any settlement figures here are illustrative only.
Confirm your rights and any deadline with your state’s workers’ compensation board and a licensed attorney before you act.