Hawaii enacted its Temporary Disability Insurance (TDI) law in 1969.

In 1986, The DBL Center founder David Cohen traveled to Hawaii to build relationships in the region and, since then, our company has grown to provide TDI coverage to more than 3,500 business owners. The DBL Center has become the leading insurance wholesaler and largest underwriter in the market.

Hawaii has some of the most generous TDI benefits in the country and has consistently increased benefits in line with the cost of living in recent years. For 2023, pooled premium rates have not increased.

How Much Does TDI Pay in Hawaii?

Hawaii TDI benefits pay workers who are unable to work due to illness or injury not incurred on the job, at a rate of 58% of their average weekly wage, up to the new weekly maximum benefit amount of $765 in 2023. This is an increase from the 2022 benefit, which had a limit of $697 per week. Benefits can last for up to 26 weeks. Hawaii does have an eight-day waiting period to collect short-term disability benefits.

Hawaii Family Leave Law: Growing Numbers of States Now Provide Family Leave

In addition to TDI for injured, ill or temporarily disabled employees, Hawaii also offers paid family leave under the Hawaii Family Leave Law (HFLL).

Only businesses with more than 100 employees working during each of 20 calendar weeks in the current or preceding calendar year are required to provide HFLL.

A worker is entitled to HFLL if they have worked for at least six consecutive months with any employer.

Unlike in states that offer Paid Family and Medical Leave, such as Massachusetts and Connecticut, workers in Hawaii cannot use TDI benefits to cover paid family leave to care for a family member. Employers can use any accrued Paid Time Off (PTO) or paid sick leave to care for a family member who is ill or injured or to care for or bond with a child within the first year of birth, adoption or foster care.

While HFLL is not a benefit underwritten by insurance brokers, it’s important for insurance brokers serving Hawaii to understand how it works in order to help workers file the right claim for a specific situation.

It’s also important to note that TDI applies to any Hawaii business with more than 20 workers, while HFLL applies to larger businesses with 100+ employees.

Hawaii Businesses at a Glance

In recent years, Hawaii businesses have struggled with recruiting and retaining talent in many fields. Students leave the Hawaiian Islands to attend college and fail to come back, due to the lack of jobs and high cost of living in the state, according to HawaiiBusiness.com.

The growth of high-tech industries such as agriculture and astronomy can help by creating opportunities not just for engineers and scientists, but support staff like HR executives, financial officers, operations managers, and more.

To attract a younger workforce, many Hawaiian business owners are emphasizing inclusion, diversity, and equity, according to the Hawaii Island Business Report 2022.

Robust benefits, including privately written TDI coverage and voluntary worksite benefits, can also help Hawaiian business owners recruit workers.

Using Hawaii TDI to Enhance Employee Benefits

If you’re an insurance broker in Hawaii, are you doing all you can to maximize employee benefits for your clients?

As a statutory benefit, TDI can act as your foot-in-the-door. Whether you are sharing the need for TDI with new Hawaii businesses or consistently staying in touch with current businesses for TDI renewals, the conversation should go deeper.

Offering ancillary benefits like Group Life / AD&D, life insurance, critical illness insurance, accidental coverage, and dental and vision can help Hawaiian businesses compete with mainland companies.

In spite of the cost of living, Hawaii’s unique culture and beautiful environment makes the state highly desirable for professionals in a variety of fields. Hawaii business owners could be missing out on recruiting top talent if they don’t offer the benefits today’s workers demand.

Hawaii insurance brokers can assist with TDI renewals and help business owners create a robust benefits package that can keep workers on the islands or bring young graduates back to their home state.

Are you ready to enter 2023 helping more Hawaii business owners than ever? Let The DBL Center help with our white-glove, white-label back-office staff, technology tools like our Broker Dashboard: Net Revenue Tracker, and the marketing support you need to grow your book of business.