Hawaii Employers FAQs

Due to the complexity of the law that may require very fact-specific analysis, this material is not intended to be legal, accounting, or other professional advice, and is provided only as general information.
Last reviewed: Oct. 12, 2015.

EMPLOYER FAQs – from Hawaii Department of Labor and Industrial Relations
  • Who is required to provide health care insurance coverage?
    All employers with one or more employees, whether full-time or part-time, permanent or temporary, are required to provide Prepaid Health Care Act coverage to their eligible employees in Hawaii unless the employees fall into an excluded category.
  • Who is excluded from health care insurance coverage?
    Individuals working less than twenty hours per week, agricultural seasonal workers, insurance or real estate salespersons paid solely by commission, individuals working for family members (son, daughter, spouse) or children under 21 working for their mother or father.
  • How does an employer provide health insurance coverage?
    Employers may purchase a DLIR approved health care plan or a Qualified Health Plan from HealthCare.gov. {Note: employers may adopt an approved self-insured plan, which requires audit information and bonding.}
  • How much of the premium does the employer have to pay on behalf on an employee?
    At least one-half of the premium as long as the employee contributes no more than 1.5% of their wages towards the premium.
  • Are there tax credits for providing employees health insurance?
    Yes, small employers with fewer than 25 full-time equivalent employees and pay an average wage of less than $50,000 a year may be eligible for a tax credit to offset the cost of health insurance premiums for employees. Under state law, certain employers may also be eligible for premium supplementation.
  • Are employers required to provide family coverage under the PHCA  or ACA?
    No, however, depending on the type of plan offered by the employer – employers may offer family coverage and either the employee pays 100% or 50% of the family premium