Hawaii PEO Law FAQs
Does Hawaii require PEOs to register with the state?
Yes. Hawaii requires PEOs to register with the Department of Labor and Industrial Relations (DLIR) under HRS Chapter 373L. Applicants must post a bond ranging from $25,000 to $250,000, with biennial renewal required.
What is Hawaii's unemployment insurance (SUI) taxable wage base?
Hawaii's SUI taxable wage base is $64,500 per employee, which is among the highest in the country. The new employer rate is 2.4%.
Is workers' compensation mandatory in Hawaii?
Yes. Hawaii requires all employers to carry workers' compensation insurance. Coverage is secured through private carriers, security deposit, or approved self-insurance under HRS 386-121(a); there is no state fund (Hawaii Employers' Mutual Insurance Company is an independent private mutual, not a state agency).
What is Hawaii's Prepaid Healthcare Act (PREP)?
Hawaii's Prepaid Healthcare Act (PREP) requires employers with one or more full-time employees to provide health insurance. The employer must pay at least 50% of the premium. PEOs operating in Hawaii must comply with PREP.
What is the minimum wage in Hawaii?
Hawaii's minimum wage is $16.00 per hour, which is above the federal minimum wage. The state minimum wage is adjusted periodically.