The State Legislature officially adjourned in May after a busy and productive legislative session. The SHRM Hawaii Legislative Affairs Committee (LAC), assisted by Hawaii Public Policy Advocates, spent months tracking legislation, submitting testimony, monitoring hearings, and advocating on issues impacting Human Resources in Hawai’i. Throughout the legislative session, the committee worked to ensure the HR profession's perspective was represented as lawmakers considered policies affecting employers and employees across the state. 

Several important employment-related measures were enacted this year, while others will likely return during the 2027 legislative session. Below are a few of the key bills HR professionals should be aware of and how SHRM Hawaii advocated throughout the process.

New HR-Related Laws Enacted:  

HB1515: RELATING TO WORKERS' COMPENSATION.

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 in order to assess the employee's ability to return to work. Allows licensed occupational and physical therapists to be deemed qualified to perform functional capacity examinations. (CD1)

SHRM Hawaii Position: The LAC Committee respectfully opposed the measure because it removed a layer of coordination and balance. Employers are often responsible for coordinating modified duty, evaluating job requirements, and managing workers’ compensation claims. Removing their opportunity to participate in decisions that directly affect return-to-work determinations may lead to misalignment between medical assessments and actual workplace conditions, increased disputes, and unnecessary costs. HR practitioners should review the new law to fully assess how it may impact their workers’ compensation program. 

Current Status: Enacted as act 124 on 06/24/2026 (Gov. Msg. no.1225). The act is now effective as of July 1, 2026.

SHRM Hawaii Advocacy in Action

In its committee report to Senate President Ronald Kouchi, the Senate Committee on Labor and Technology directly quoted SHRM's concerns regarding HB1515. This recognition underscores the value of SHRM Hawaii's Legislative Affairs Committee in contributing practical HR expertise to legislative discussions. 

HB1509: RELATING TO WORKERS' COMPENSATION.

Repeals the authorization of a physician to transmit a treatment plan by mail or facsimile and the requirement that the physician submit the plan to an address or facsimile number provided by the employer. Requires an employer to file a response, either accepting or objecting to a treatment plan, within ten days of receipt. Imposes a monetary penalty if an employer does not file a response within the ten-day period, unless there was good cause for the delay. Clarifies that a treatment plan is deemed accepted if an employer fails to file certain documents within the ten-day period. Imposes penalties on employers found to have improperly denied a treatment plan. (CD1)

SHRM Hawaii Position: The LAC Committee initially opposed this bill, but continued to monitor as recommended changes were incorporated. 

Current Status: Enacted as Act 131 on 06/24/2026 (Gov. Msg. no.1232). The act is now effective as of July 1, 2026.

HB1514: RELATING TO WORKERS' COMPENSATION.

Clarifies the process for selecting a certified provider of vocational rehabilitation services. Requires certified providers to automatically approve vocational rehabilitation services for an injured employee if those services will likely be required for suitable gainful employment and the initial evaluation report finds the injured employee feasible to participate. Requires providers to file an employee's vocational rehabilitation plan no later than one hundred twenty days after submitting an initial evaluation report, unless extended by the Director of Labor and Industrial Relations. Clarifies the process for an employer to object to a vocational rehabilitation plan. (CD1)

SHRM Hawaii Position: The LAC Committee respectfully opposed the measure as automatic approval of vocational rehabilitation services whenever they are deemed “likely” to be required significantly limits an employer’s ability to meaningfully review, assess, and coordinate services. Employers often must work with insurers, third-party administrators, and legal counsel to evaluate rehabilitation plans and ensure they are appropriate, cost-effective, and aligned with statutory requirements. Mandating automatic approval removes necessary checks and reduces collaboration in the cooperative process. A one-size-fits-all approach does not account for the complexities of individual cases. 

Current Status: Enacted as Act 046 on 05/27/2026 (Gov. Msg. No. 1146). The act is now effective as of July 1, 2026.

What HR Professionals Should Do Now

As these new laws take effect, HR professionals should consider:

• Reviewing their workers' compensation policies and procedures.
• Discussing legislative changes with your workers' compensation carrier or third-party administrator.
• Educating supervisors and HR staff on updated requirements and timelines.
• Evaluating current return-to-work and vocational rehabilitation processes for compliance.

Bills on the Radar for Next Session:

HB2360: RELATING TO PAID FAMILY LEAVE.

By 1/1/2029, requires the Department of Labor and Industrial Relations to establish a family and medical leave insurance program and begin collecting payroll contributions to finance payment of benefits. By 1/1/2030, requires the Department to begin receiving claims and paying benefits under the program. Specifies eligibility requirements and employee protections under the program. Excludes paid family and medical leave benefits from income tax. Effective 7/1/3000. (HD2)

SHRM Hawaii Position: Paid Family Leave continues to be a hot topic in the legislature. The SHRM LAC will continue to monitor future bills and continue to advocate from an HR standpoint. 

Current Status: Died in the 2026 legislative session. The bill successfully passed the House with amendments (as HD2) and crossed over to the Senate. However, it died after being referred to LBT/CPN, WAM/JDC on March 12, 2026.

Looking Ahead to 2027

The legislative session may be over, but the work continues. The SHRM Hawaii Legislative Affairs Committee is already preparing for the 2027 session by monitoring emerging workplace issues and evaluating potential legislation that may impact Hawaii employers and HR professionals.

To help members prepare, we're planning a Legislative Update Webinar for the fall. The webinar will review newly enacted employment laws, discuss practical implications for HR professionals, and provide an early look at legislative issues expected to emerge during the 2027 session. Watch for additional details this fall.

Get Involved

Interested in helping shape workplace policy in Hawai’i? The SHRM Hawaii Legislative Affairs Committee welcomes HR professionals who are passionate about employment law, public policy, and advocacy. Whether you'd like to stay informed or become actively involved, we'd love to hear from you.

Members with questions or an interest in participating in advocacy efforts are encouraged to contact Legislative Affairs Committee Co-Chairs Maggie Batangan and Erin Kogen at [email protected] to learn more.

Erin Hisano Kogen is the owner of Hisano Kogen LLLC, an employment and labor law practice, and Maggie Batangan is the Chief Administrative Officer at Maui Economic Opportunity, Inc. Erin is serving her second year as Legislative Affairs Co-Chair, while Maggie is in her first year in the role.