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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.

 

 

The information and materials on this blog are provided for informational purposes only and are not intended to constitute legal or tax advice. Information provided in this blog may not reflect the most current legal developments and may vary by jurisdiction. The content on this blog is for general informational purposes only and does not apply to any particular facts or circumstances. The use of this blog does not in any way establish an attorney-client relationship, nor should any such relationship be implied, and the contents do not constitute legal or tax advice. If you require legal or tax advice, please consult with a licensed attorney or tax professional in your jurisdiction. The contributing authors expressly disclaim all liability to any persons or entities with respect to any action or inaction based on the contents of this blog.

Bonnie Mangels – Bonnie is the Corporate Counsel and Senior Compliance Manager for Sequoia. When not inundated in paperwork and legal briefs, her interests include arts and crafts, bunnies, and the Bay Area.