Downtown Honolulu, Hawaii
50 S Beretania St, Ste C210D
Honolulu, HI 96813
(808) 354-0498

What to Know About Temporary Disability Insurance July 11, 2019

Downtown Honolulu, Honolulu
What to Know About Temporary Disability Insurance, Honolulu, Hawaii

If you’re forming a business and plan to have employees, you must acquire temporary disability insurance. If your employees are unable to work due to an injury or disability outside of work, this type of insurance will support them until they are able to return to work. Here’s more information about what temporary disability insurance is and why it’s important.

Your Guide to Temporary Disability Insurance

What Is It?

Temporary disability insurance is a government wage replacement program similar to workers’ compensation and unemployment insurance. The system was enacted in 1969 in Hawaii. If an employee cannot work due to an injury or debilitating illness contracted outside the job, they may qualify for partial paid disability for lost wages while they recover.

Who Provides It?

As the employer, your company will be responsible for providing temporary disability insurance. The plan you choose will determine the benefits your employee will receive while they’re disabled. Statutory plans provide 58% of the employee’s weekly average wages, and they’re entitled to receive it from the eighth day of disability up to 26 weeks.

temporary disability insuranceIf you don’t offer this coverage for your employees, you may be reported to the Disability Compensation Division of the Hawaii Department of Labor and Industrial Relations.

Who Does It Cover?

Although it covers full-time, part-time, and intermittent employees, it doesn’t include federal government employees, insurance or real estate agents paid by commission, some family employees, and student nurses or interns.

The injured employee must be employed at least 14 weeks and paid for 20 hours or more each week, earning at least $400 in the 52 weeks before the injury. The injury or illness must prevent them from performing work, and it must be certified by a medical professional. The employee will also have a formal hearing during the application process to determine their eligibility.

 

If you’re a business owner experiencing difficulty managing temporary disability insurance, contact the team at Talent HR Solutions in Honolulu, HI. This third-party service provider offers comprehensive HR consulting, such as payroll management, and will oversee all of your insurance and employee coverage needs. Learn more about their services online, or call (808) 354-0498 to schedule a consultation with a specialist.

Other Announcements, Events and Deals from Talent HR Solutions
How can small businesses recruit and retain good talent?, Honolulu, Hawaii
Recruiting and retaining great talent can be challenging for small business owners in today’s tight job market. They’re going up against big corporations with more resources, who can...read more
No HR Department? Make Sure You Do These 5 Things., Honolulu, Hawaii
Most small businesses don’t have a human resources department - it doesn’t make sense to hire an HR manager when you only have 4 employees. But beyond payroll and benefits, there’s a...read more
Need to hire a new employee?, Honolulu, Hawaii
Need to hire a new employee? Consider temp-to-hire.   Have you ever hired someone who seemed great on paper and in the interview, but who turned out to be a terrible fit once ...read more
How Businesses Benefit From Payroll Service Outsourcing, Honolulu, Hawaii
Providing payroll services can be a tedious task for any business. It’s a complicated process that requires a deep attention to detail and a large investment of company time to ensur...read more