Under this bill, employers who deny the compensability of an employee's injury would be required to submit a written report supporting their denial to the Director of Labor and Industrial Relations within 30 days. Failure to comply will result in the denial being viewed as an acceptance of compensability for the injury. Moreover, the bill mandates that employers provide immediate medical coverage up to $10,000 for an injured employee until a formal denial is issued, ensuring that workers have access to necessary medical care without financial barriers as they navigate the claims process.
Summary
Senate Bill SB918 aims to amend Hawaii's Workers' Compensation Law by implementing new notice requirements for employers related to employee injuries and compensation claims. The bill is designed to alleviate current issues surrounding delays in claims, claim denials, and communication about employee rights and benefits. Notably, it incorporates certain guidelines from California's workers' compensation laws, which are thought to provide a more efficient framework for processing claims. The proposed changes encompass establishing timelines and specific actions that employers must take when an employee experiences a work-related injury.
Contention
While the bill is largely supported for its proactive approach to employee protection, concerns remain around its implications for employers, particularly regarding the administrative burden of the new requirements. Critics of the bill argue that it may impose financial pressures on businesses, especially smaller employers who could find it challenging to meet the new notice deadlines and cover immediate medical expenses. The legislation seeks to strike a balance between protecting employee rights and ensuring manageable compliance for employers, making its potential impact a topic of discussion among lawmakers and stakeholders.