Hawaii’s Temporary Disability Insurance (TDI) was enacted in 1969 and required employers to provide “monthly replacement” coverage to eligible employees for injuries or illnesses unrelated to pregnancy. This means that if an employee cannot work outside of work due to injury or illness and the employee meets the employee’s statutory requirements, compensate the disabled employee for lost wages. However, TDI does not cover medical care.
To qualify for TDI benefits, an employee must work in Hawaii for at least 14 weeks, and that employee must be paid 20 hours or more, each of which must be paid at least $400 within 52 weeks of the employee’s first day of employment. The disability was not minimal and must have been 14 weeks continuous and not with a single employer. The employee must be in current employment to qualify.
Certain employees are exempt from the news, including federal government employees, domestic workers, insurance agents, real estate salespeople, and those under 18 who are paid only on a commission basis and who mail or distribute newspapers. Hospitals and other categories of staff who have completed a four-year course in medical school are exempt from the law. For exceptions and immunities, see sections 392-5 and 392-27 of the Act.
An employer may use one or more of the following methods to provide TDI benefits:
See a list of authorized TDI insurance companies to purchase a TDI policy.
The department must approve the adoption of a “self-insurance” plan. As a self-insurer, the employer must provide proof of financial solvency and ability to pay benefits:
After initial approval, annually, continue the employer’s self-insurance plan.
A collection of valuable papers or
12-11-69 and 12-11-70, post a surety bond in an amount determined following Hawaii Administrative Regulations.
At least under collective agreements that include sick leave as required by the TDI Act.
Before implementation, to the department for review and approval (FormTDI-15).
The employer’s plan determines how much benefit the employee receives each week, how long the employee will be paid, and the employee’s waiting period.
For example, if the employer has a statutory plan. A plan that provides benefits following statutory minimum benefit standards provides a maximum of 26 weeks from the employee’s eighth day of disability up to an average of 58% of the employee’s weekly salary—a benefit amount determined annually by the department.
Suppose the employer has a self-insured plan that differs from the statutory benefit and is approved by the department as equal to or greater than the statutory plan. In that case, the weekly benefit amount, payment period, and waiting period are required and or not defined by the plan. Ask your employer for plan details.
The employer may pay the total cost of TDI reimbursement, or the employer may share the cost equally with employees who are eligible for reimbursement. However, employee contributions cannot exceed 0.5% of the employee’s weekly wages or the maximum weekly deduction.
To file a TDI claim, an employer must follow the procedures outlined below:
Notify the employer immediately of the disability.
Request Form TDI-45, Claiming TDI Benefits, from the employer. Within 90 days of the start of the disability period.
Part A of the application form is the Applicant’s Statement.
Submit the form to a physician, physician assistant, or registered nurse and a physician’s statement for Part C certification of disability.
Ask the employer to complete Part B, Employer’s Declaration.
Send the form to the employer’s TDI insurance company if the employer is not insured.
The employer or insurer notifies the employee of their right to benefits.
The law requires that a claim be filed within 90 days of the date of the disability.
