Background Information
Effective 7/1/2016, Hawaii’s Temporary Disability Insurance Law (TDI Law) was amended to exclude the following additional services from the law’s definition of “employment,” making the persons impacted ineligible for Hawaii TDI.
Section 392-5 Excluded Services. “Employment” shall not include:
- Service performed by an individual for a corporation if the individual owns 50% or more of the corporation;
- Service performed by a member of a limited liability company if the member is an individual and has distributional interest of 50% or more of the company;
- Service performed by a partner of a partnership, if the partner is an individual;
- Service performed by a partner of a limited liability partnership if the partner is an individual and has a transferable interest of 50% or more; and
- Service performed by a sole proprietor.
Action Item
Employers with employees working in Hawaii should determine if any person in the company who would be excluded from TDI coverage under the revised law is currently covered under the company’s TDI plan. If your company offers TDI through Guardian Life, please note that coverage for affected individuals will continue through 12/31/2016 and thereafter, any person who should be excluded from coverage should not be included in the company’s TDI employee count.
Additional Information
- Companies who are offering TDI through Guardian Life may direct questions to Guardian Life at 888-278-4542 or CRU@glic.com.
- To view the relevant section of the TDI Law, please click here. The entire Act 187 is also available here.
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