HOUSE OF REPRESENTATIVES H.B. NO. 480 THIRTY-THIRD LEGISLATURE, 2025 H.D. 1 STATE OF HAWAII S.D. 1 A BILL FOR AN ACT RELATING TO WORKERS' COMPENSATION. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
HOUSE OF REPRESENTATIVES H.B. NO. 480
THIRTY-THIRD LEGISLATURE, 2025 H.D. 1
STATE OF HAWAII S.D. 1
HOUSE OF REPRESENTATIVES
H.B. NO.
480
THIRTY-THIRD LEGISLATURE, 2025
H.D. 1
STATE OF HAWAII
S.D. 1
A BILL FOR AN ACT
RELATING TO WORKERS' COMPENSATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that timely and accurate determination of an injured worker's physical abilities and functional restrictions is essential to ensure their fair treatment under the workers' compensation system. Functional capacity examinations play a critical role in assessing whether an injured worker can return to work, with or without accommodations, or proceed with vocational rehabilitation when returning to full duty is not possible. However, the current system often delays functional capacity examinations due to denials or pending approvals from insurers or adjusters, thereby prolonging the injured worker's path to recovery and return to work. These delays exacerbate financial and emotional strain on workers, increase administrative inefficiencies, and impede the progress of vocational rehabilitation programs. The purpose of this Act is to streamline the approval process for functional capacity examinations, ensuring automatic approval of the examinations when requested by the attending physician under certain conditions, thereby reducing unnecessary delays and improving outcomes for injured workers. SECTION 2. Chapter 386, Hawaii Revised Statutes, is amended by adding a new section to part II to be appropriately designated and to read as follows: "§386- Functional capacity examination. (a) When an injured employee's attending physician has determined that the employee has reached medical stabilization and is permanently unable to return to the employee's usual and customary employment, the physician may request a functional capacity examination to be performed by a qualified health care provider whose opinion or advice is necessary in the evaluation and treatment of the injured employee's injury; provided that: (1) The qualified health care provider shall be trained to perform a functional capacity examination; and (2) The attending physician shall not be required to obtain permission from the employer before requesting a functional capacity examination or referring the employee for a functional capacity examination. (b) The name, business address, discipline, and specialty of the qualified health care provider and reasons for the functional capacity examination shall be submitted in writing to the employer at least seven calendar days before the referral. (c) The qualified health care provider performing the functional capacity examination shall provide a copy of the functional capacity examination report to the attending physician and employer no later than fourteen calendar days after the date of the examination. (d) Fees for functional capacity examinations requested by the attending physician pursuant to this section shall be paid by the employer. (e) For the purposes of this section: "Functional capacity examination" means a set of tests that are used to identify an injured employee's physical skills, functional capabilities, activity endurance, and work tolerances after reaching medical stabilization. "Functional capacity examination report" means a report issued by a qualified health care provider that provides recommendations regarding an injured employee's ability to return to work or return to work with restrictions or the need for accommodations to safely return to work based on a functional capacity examination performed on the employee. "Qualified health care provider" means a health care provider who meets the qualifications under section 386-27 to render health care and services under this chapter." SECTION 3. Section 386-27, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows: "(a) All health care providers rendering health care and services under this chapter shall be qualified by the director and shall remain qualified by satisfying the requirements established in this section. The director shall qualify any person initially who has a license for the practice of: (1) Medicine or osteopathy under chapter 453; (2) Dentistry under chapter 448; (3) Chiropractic under chapter 442; (4) Naturopathic medicine under chapter 455; (5) Optometry under chapter 459; (6) Podiatry under chapter 463E; (7) Psychology under chapter 465; [and] (8) Advanced practice registered nurses under chapter 457[.]; and (9) Occupational therapy under chapter 457G or physical therapy under chapter 461J; provided that occupational therapists and physical therapists qualified under this section shall be qualified for the limited purpose of performing functional capacity examinations pursuant to section 386‑ ." SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. SECTION 5. This Act shall take effect on July 1, 2050.
SECTION 1. The legislature finds that timely and accurate determination of an injured worker's physical abilities and functional restrictions is essential to ensure their fair treatment under the workers' compensation system. Functional capacity examinations play a critical role in assessing whether an injured worker can return to work, with or without accommodations, or proceed with vocational rehabilitation when returning to full duty is not possible. However, the current system often delays functional capacity examinations due to denials or pending approvals from insurers or adjusters, thereby prolonging the injured worker's path to recovery and return to work. These delays exacerbate financial and emotional strain on workers, increase administrative inefficiencies, and impede the progress of vocational rehabilitation programs.
The purpose of this Act is to streamline the approval process for functional capacity examinations, ensuring automatic approval of the examinations when requested by the attending physician under certain conditions, thereby reducing unnecessary delays and improving outcomes for injured workers.
SECTION 2. Chapter 386, Hawaii Revised Statutes, is amended by adding a new section to part II to be appropriately designated and to read as follows:
"§386- Functional capacity examination. (a) When an injured employee's attending physician has determined that the employee has reached medical stabilization and is permanently unable to return to the employee's usual and customary employment, the physician may request a functional capacity examination to be performed by a qualified health care provider whose opinion or advice is necessary in the evaluation and treatment of the injured employee's injury; provided that:
(1) The qualified health care provider shall be trained to perform a functional capacity examination; and
(2) The attending physician shall not be required to obtain permission from the employer before requesting a functional capacity examination or referring the employee for a functional capacity examination.
(b) The name, business address, discipline, and specialty of the qualified health care provider and reasons for the functional capacity examination shall be submitted in writing to the employer at least seven calendar days before the referral.
(c) The qualified health care provider performing the functional capacity examination shall provide a copy of the functional capacity examination report to the attending physician and employer no later than fourteen calendar days after the date of the examination.
(d) Fees for functional capacity examinations requested by the attending physician pursuant to this section shall be paid by the employer.
(e) For the purposes of this section:
"Functional capacity examination" means a set of tests that are used to identify an injured employee's physical skills, functional capabilities, activity endurance, and work tolerances after reaching medical stabilization.
"Functional capacity examination report" means a report issued by a qualified health care provider that provides recommendations regarding an injured employee's ability to return to work or return to work with restrictions or the need for accommodations to safely return to work based on a functional capacity examination performed on the employee.
"Qualified health care provider" means a health care provider who meets the qualifications under section 386-27 to render health care and services under this chapter."
SECTION 3. Section 386-27, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) All health care providers rendering health care and services under this chapter shall be qualified by the director and shall remain qualified by satisfying the requirements established in this section. The director shall qualify any person initially who has a license for the practice of:
(1) Medicine or osteopathy under chapter 453;
(2) Dentistry under chapter 448;
(3) Chiropractic under chapter 442;
(4) Naturopathic medicine under chapter 455;
(5) Optometry under chapter 459;
(6) Podiatry under chapter 463E;
(7) Psychology under chapter 465; [and]
(8) Advanced practice registered nurses under chapter 457[.]; and
(9) Occupational therapy under chapter 457G or physical therapy under chapter 461J; provided that occupational therapists and physical therapists qualified under this section shall be qualified for the limited purpose of performing functional capacity examinations pursuant to section 386‑ ."
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect on July 1, 2050.
Report Title: Workers' Compensation; Functional Capacity Examination; Occupational Therapy; Physical Therapy Description: Authorizes an attending physician to request a functional capacity examination and refer an injured employee for the examination without first obtaining permission from the employee's employer. Allows licensed occupational and physical therapists to be deemed qualified to perform functional capacity examinations. Effective 7/1/2050. (SD1) The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
Report Title:
Workers' Compensation; Functional Capacity Examination; Occupational Therapy; Physical Therapy
Description:
Authorizes an attending physician to request a functional capacity examination and refer an injured employee for the examination without first obtaining permission from the employee's employer. Allows licensed occupational and physical therapists to be deemed qualified to perform functional capacity examinations. Effective 7/1/2050. (SD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.