What consequence do employers face for not providing workers' compensation insurance in Hawaii?

Employers in Hawaii who fail to provide workers' compensation insurance face significant repercussions, including fines or legal action, and they may be held liable for injury claims brought by their employees. Workers' compensation insurance is a legal requirement in Hawaii, designed to protect both employees and employers. Without this coverage, employers not only expose their workers to financial risks associated with workplace injuries but also themselves to substantial liability.

If an employee becomes injured or ill due to work-related activities, the lack of workers’ compensation insurance means that the employer could be sued directly for damages. This could involve covering medical expenses, lost wages, and other costs associated with the injury.

Additionally, the state can impose fines for non-compliance with workers' compensation laws. Legal action against the employer can include civil lawsuits and administrative penalties, which can significantly impact the financial health of a business.

The emphasis on ensuring that employees are provided with the necessary protections through workers' compensation serves as a safeguard for both parties, fostering a safer workplace environment while also limiting the financial liability of employers.