HB 1514: Department of Labor and Industrial Relations; Workers' Compensation; Vocational Rehabilitation Services; Certified Providers; Automatic Approval

A BILL FOR AN ACT

RELATING TO WORKERS' COMPENSATION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that early intervention is vital to ensure the efficient and effective rehabilitation of employees who suffer a work-related injury.  This often begins with the referral of an injured employee for vocational rehabilitation services.  Vocational rehabilitation services are intended to help the employee return to work as quickly as possible with pay as close as possible to pre-injury wages.  Urgency is needed when initiating the vocational rehabilitation process to avoid prolonged adverse effects on injured employees and minimize costs for employers and insurers.

     The legislature further finds that it is crucial for injured employees to have access to appropriate vocational rehabilitation services in the State.  Many vocational rehabilitation providers have expressed concern regarding the future availability of services as providers retire or leave the practice.  It is important for current and future providers to be properly trained on the vocational rehabilitation process.

     Accordingly, the purpose of this Act is to:

     (1)  Clarify the process for selecting a certified provider of vocational rehabilitation services;

     (2)  Require a provider to automatically approve an injured employee for vocational rehabilitation services if the provider determines that the injured employee will likely require vocational rehabilitation services to return to suitable gainful employment; and

     (3)  Clarify the process for an employer to object to a vocational rehabilitation plan.

     SECTION 2.  Section 386-25, Hawaii Revised Statutes, is amended to read as follows:

     "§386-25  Vocational rehabilitation.  (a)  The purposes of vocational rehabilitation are to restore an injured worker's earnings capacity as nearly as possible to that level that the worker was earning at the time of injury and to return the injured worker to suitable gainful employment in the active labor force as quickly as possible in a cost-effective manner.  Vocational rehabilitation shall not be available for public employees who have retired from a public employer, as defined in section 76-11, with whom they sustained their work injury.

     Employees of public employers, as defined in section 76-11, who are eligible for their respective public employer's return to work program, shall participate in and complete the return to work program, including temporary light duty placement efforts, as a prerequisite to vocational rehabilitation benefits under this section.

     (b)  The director may refer employees who may have or have suffered permanent disability as a result of work injuries and who, in the director's opinion, can be vocationally rehabilitated to the department of human services or to private providers of rehabilitation services for vocational rehabilitation services that are feasible.  A referral shall be made upon recommendation of the rehabilitation unit established under section 386-71.5 and after the employee has been deemed physically able to participate in rehabilitation by the employee's attending physician.  The unit shall include appropriate professional staff and shall have the following duties and responsibilities:

     (1)  To review and approve vocational rehabilitation plans developed by certified providers of vocational rehabilitation services, whether they be private or public;

     (2)  To adopt rules consistent with this section that shall expedite and facilitate the identification, notification, and referral of industrially injured employees to vocational rehabilitation services, and establish minimum standards for providers providing vocational rehabilitation services under this section;

     (3)  To certify private and public providers of vocational rehabilitation services meeting the minimum standards established under paragraph (2); and

     (4)  To enforce the implementation of vocational rehabilitation plans.

     (c)  Enrollment in a vocational rehabilitation plan or program shall not be mandatory and the approval of a proposed vocational rehabilitation plan or program by the injured employee shall be required.  [The] If the injured employee elects to enroll in a vocational rehabilitation plan or program, the injured employee [may] shall select a certified provider of vocational rehabilitation services[.  Both] no later than thirty days after the referral is made.  Once the injured employee selects a certified provider, both the certified provider and the injured employee[, within a reasonable time after initiating rehabilitation services,] shall give proper notice of selection to the employer[.] within seven days.  If the injured employee fails to select a certified provider within thirty days, the employer shall select a certified provider of vocational rehabilitation services and give proper notice of selection to the injured employee.

     (d)  A provider shall submit an initial evaluation report of the employee to the employer and the director within forty‑five days of the date of referral or selection.  The evaluation shall determine whether the employee requires vocational rehabilitation services to return to suitable gainful employment, identify the necessary services, and state whether the provider can provide these services.  The initial evaluation report shall contain:

     (1)  An assessment of the employee's:

          (A)  Current medical status;

          (B)  Primary disability;

          (C)  Secondary disability;

          (D)  Disabilities that are not related to the work injury; and

          (E)  Physical or psychological limitations, or both.

          If this information is not provided by the treating physician within a reasonable amount of time, information from another physician shall be accepted;

     (2)  A job analysis addressing the demands of the employee's employment;

     (3)  A statement from the provider identifying the employee's vocational handicaps in relation to the employee's ability to:

          (A)  Return to usual and customary employment; and

          (B)  Participate in and benefit from a vocational rehabilitation plan or program;

     (4)  A statement from the provider determining the feasibility of vocational rehabilitation services, including:

          (A)  The provider's ability to assist the employee in the employee's efforts to return to suitable gainful employment;

          (B)  An outline of specific vocational rehabilitation services to be provided, justification for the necessity of services, and how the effectiveness of these services is measured; and

          (C)  How the vocational rehabilitation services directly relate to the employee obtaining suitable gainful employment; and

     (5)  The enrollment form and the statement of worker's rights and responsibilities form obtained from the department.

     (e)  A provider shall automatically approve vocational rehabilitation services for an injured employee; provided that the provider determines that the injured employee will likely require vocational rehabilitation services to return to suitable gainful employment, and the initial evaluation report finds the injured employee feasible to participate.

     [(e)] (f)  A provider shall file the employee's vocational rehabilitation plan with the approval of the employee[.] no later than one hundred twenty days after the provider submits an initial evaluation report; provided that the director may grant an extension in the director's discretion.  Upon receipt of the vocational rehabilitation plan from the provider, an employee shall have ten days to review and sign the vocational rehabilitation plan.  The vocational rehabilitation plan shall be submitted to the employer and the employee and be filed with the director within two days from the date of the employee's signature.  A vocational rehabilitation plan shall include a statement of the feasibility of the vocational goal, using the process of:

     (1)  First determining if the employee's usual and customary employment represents suitable gainful employment, and, should it not;

     (2)  Next determining if modified work or other work with the same employer represents suitable gainful employment, and, should it not;

     (3)  Next determining if modified or other employment with a different employer represents suitable gainful employment, and [finally], should it not;

     (4)  Then providing training to obtain employment in another occupational field.  When training to obtain employment in another occupational field is required, the first appropriate option among the following options shall be selected for the employee:

          (A)  On-the-job training;

          (B)  Short-term retraining program (less than fifty‑two weeks); or

          (C)  Long-term retraining program (more than fifty-two weeks); and

     (5)  [Lastly, if] If training under paragraph (4) is not feasible, then self-employment may be considered.

     [(f)] (g)  A vocational rehabilitation plan may be approved by the director; provided that the vocational rehabilitation plan includes:

     (1)  A physician's assessment of the employee's physical limitations, psychological limitations, and ability to return to work.  If this information is not provided by the treating physician within a reasonable amount of time, information from another physician shall be accepted;

     (2)  A labor market survey indicating there are reasonable assurances that the proposed occupation for which the employee is to be placed or trained is readily available in the community when placement begins, or there are assurances of reemployment by the employer;

     (3)  A job analysis of the proposed occupation, setting forth its duties, responsibilities, physical demands, environmental working conditions, specific qualifications needed for entry-level employment, reasonable accommodations, expected estimated earnings, and other relevant information;

     (4)  The nature and extent of the vocational rehabilitation services to be provided, including:

          (A)  Specific services to be provided;

          (B)  Justification for the necessity of the services;

          (C)  Estimated time frames for delivery of services;

          (D)  The manner in which the effectiveness of these services is to be measured;

          (E)  Criteria for determining successful completion of the vocational rehabilitation plan; and

          (F)  The employee's responsibilities;

     (5)  A report of tests and copies thereof that have been administered to the employee, including a statement regarding the need for and use of the tests to identify a vocational goal;

     (6)  If retraining, including on-the-job training, is found to be necessary, the estimated cost of retraining, a description of specific skills to be learned or knowledge acquired with specific time periods and clearly defined measurements of success, and the nature, amount, and duration of living expenses;

     (7)  The total cost of the vocational rehabilitation plan; and

     (8)  The employee's approval of the vocational rehabilitation plan.

     [(g)] (h)  The employer shall have ten calendar days from [the postmark date on which the plan was mailed] the receipt of the vocational rehabilitation plan to submit in writing to the director any objections to the vocational rehabilitation plan.  A vocational rehabilitation plan shall be deemed received by an employer when it is transmitted with reasonable evidence of receipt.

     [(h)] (i)  The director may approve a vocational rehabilitation plan that does not include all of the requirements outlined in subsection [(f);] (g); provided that the director finds the vocational rehabilitation plan:

     (1)  Is in the best interest of the employee;

     (2)  Contains reasonable assurances that the employee will be placed in suitable gainful employment; and

     (3)  Has been approved by the employee.

     [(i)] (j)  If the vocational rehabilitation plan requires the purchase of any tools, supplies, or equipment, the purchase deadline shall be included in the vocational rehabilitation plan.  Tools, supplies, and equipment shall be considered to be the property of the employer until the vocational rehabilitation plan is determined by the director to be successfully completed, after which it shall become the property of the employee.  If the vocational rehabilitation plan requires the purchase, [etc.,] the employer shall purchase the items [prior to] before the purchase deadline in the vocational rehabilitation plan.

     [(j)] (k)  An employee with an approved vocational rehabilitation plan who is determined as able to return to usual and customary employment may choose to complete the vocational rehabilitation plan or request a new vocational rehabilitation plan of which the goal may be the employee's usual and customary employment.

     [(k)] (l)  An injured employee's enrollment in a vocational rehabilitation plan or program shall not affect the employee's entitlement to temporary total disability compensation if the employee earns no wages during the period of enrollment.  If the employee receives wages for work performed under the vocational rehabilitation plan or program, the employee shall be entitled to temporary total disability compensation in an amount equal to the difference between the employee's average weekly wages at the time of injury and the wages received under the vocational rehabilitation plan or program, subject to the limitations on weekly benefit rates prescribed in section 386-31(a).  The employee shall not be entitled to temporary total disability compensation for any week during this period where the wages equal or exceed the average weekly wages at the time of injury.

     [(l)] (m)  The director shall adopt rules for additional living expenses necessitated by the vocational rehabilitation plan or program, together with all reasonable and necessary vocational training.

     [(m)] (n)  If the rehabilitation unit determines that vocational rehabilitation is not possible or feasible, it shall certify the determination to the director.

     [(n)] (o)  Except as otherwise provided, determinations of the rehabilitation unit shall be final unless a written request for reconsideration is filed with the rehabilitation unit within ten calendar days of the date of the determination.

     The rehabilitation unit shall issue a reconsideration determination to affirm, reverse, or modify the determination or refer the request for reconsideration for hearing.

     [(o)] (p)  A reconsideration determination shall be final unless a written request for hearing is filed within ten calendar days from the date of the reconsideration determination.  All hearings shall be held before a hearings officer designated by the director.  A written decision shall be issued in the name of the director.

     [(p)] (q)  The eligibility of any injured employee to receive other benefits under this chapter shall in no way be affected by the employee's [entrance upon a course of] enrollment in a vocational rehabilitation plan or program as [herein] provided[.] in this section.

     [(q)] (r)  Vocational rehabilitation services for the purpose of developing a vocational rehabilitation plan may be approved by the director and the director may periodically review progress in each case."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 2026.

Report Title:

Department of Labor and Industrial Relations; Workers' Compensation; Vocational Rehabilitation Services; Certified Providers; Automatic Approval

Description:

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)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

RELATING TO WORKERS' COMPENSATION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that early intervention is vital to ensure the efficient and effective rehabilitation of employees who suffer a work-related injury.  This often begins with the referral of an injured employee for vocational rehabilitation services.  Vocational rehabilitation services are intended to help the employee return to work as quickly as possible with pay as close as possible to pre-injury wages.  Urgency is needed when initiating the vocational rehabilitation process to avoid prolonged adverse effects on injured employees and minimize costs for employers and insurers.

     The legislature further finds that it is crucial for injured employees to have access to appropriate vocational rehabilitation services in the State.  Many vocational rehabilitation providers have expressed concern regarding the future availability of services as providers retire or leave the practice.  It is important for current and future providers to be properly trained on the vocational rehabilitation process.

     Accordingly, the purpose of this Act is to:

     (1)  Clarify the process for selecting a certified provider of vocational rehabilitation services;

     (2)  Require a provider to automatically approve an injured employee for vocational rehabilitation services if the provider determines that the injured employee will likely require vocational rehabilitation services to return to suitable gainful employment; and

     (3)  Clarify the process for an employer to object to a vocational rehabilitation plan.

     SECTION 2.  Section 386-25, Hawaii Revised Statutes, is amended to read as follows:

     "§386-25  Vocational rehabilitation.  (a)  The purposes of vocational rehabilitation are to restore an injured worker's earnings capacity as nearly as possible to that level that the worker was earning at the time of injury and to return the injured worker to suitable gainful employment in the active labor force as quickly as possible in a cost-effective manner.  Vocational rehabilitation shall not be available for public employees who have retired from a public employer, as defined in section 76-11, with whom they sustained their work injury.

     Employees of public employers, as defined in section 76-11, who are eligible for their respective public employer's return to work program, shall participate in and complete the return to work program, including temporary light duty placement efforts, as a prerequisite to vocational rehabilitation benefits under this section.

     (b)  The director may refer employees who may have or have suffered permanent disability as a result of work injuries and who, in the director's opinion, can be vocationally rehabilitated to the department of human services or to private providers of rehabilitation services for vocational rehabilitation services that are feasible.  A referral shall be made upon recommendation of the rehabilitation unit established under section 386-71.5 and after the employee has been deemed physically able to participate in rehabilitation by the employee's attending physician.  The unit shall include appropriate professional staff and shall have the following duties and responsibilities:

     (1)  To review and approve vocational rehabilitation plans developed by certified providers of vocational rehabilitation services, whether they be private or public;

     (2)  To adopt rules consistent with this section that shall expedite and facilitate the identification, notification, and referral of industrially injured employees to vocational rehabilitation services, and establish minimum standards for providers providing vocational rehabilitation services under this section;

     (3)  To certify private and public providers of vocational rehabilitation services meeting the minimum standards established under paragraph (2); and

     (4)  To enforce the implementation of vocational rehabilitation plans.

     (c)  Enrollment in a vocational rehabilitation plan or program shall not be mandatory and the approval of a proposed vocational rehabilitation plan or program by the injured employee shall be required.  [The] If the injured employee elects to enroll in a vocational rehabilitation plan or program, the injured employee [may] shall select a certified provider of vocational rehabilitation services[.  Both] no later than thirty days after the referral is made.  Once the injured employee selects a certified provider, both the certified provider and the injured employee[, within a reasonable time after initiating rehabilitation services,] shall give proper notice of selection to the employer[.] within seven days.  If the injured employee fails to select a certified provider within thirty days, the employer shall select a certified provider of vocational rehabilitation services and give proper notice of selection to the injured employee.

     (d)  A provider shall submit an initial evaluation report of the employee to the employer and the director within forty‑five days of the date of referral or selection.  The evaluation shall determine whether the employee requires vocational rehabilitation services to return to suitable gainful employment, identify the necessary services, and state whether the provider can provide these services.  The initial evaluation report shall contain:

     (1)  An assessment of the employee's:

          (A)  Current medical status;

          (B)  Primary disability;

          (C)  Secondary disability;

          (D)  Disabilities that are not related to the work injury; and

          (E)  Physical or psychological limitations, or both.

          If this information is not provided by the treating physician within a reasonable amount of time, information from another physician shall be accepted;

     (2)  A job analysis addressing the demands of the employee's employment;

     (3)  A statement from the provider identifying the employee's vocational handicaps in relation to the employee's ability to:

          (A)  Return to usual and customary employment; and

          (B)  Participate in and benefit from a vocational rehabilitation plan or program;

     (4)  A statement from the provider determining the feasibility of vocational rehabilitation services, including:

          (A)  The provider's ability to assist the employee in the employee's efforts to return to suitable gainful employment;

          (B)  An outline of specific vocational rehabilitation services to be provided, justification for the necessity of services, and how the effectiveness of these services is measured; and

          (C)  How the vocational rehabilitation services directly relate to the employee obtaining suitable gainful employment; and

     (5)  The enrollment form and the statement of worker's rights and responsibilities form obtained from the department.

     (e)  A provider shall automatically approve vocational rehabilitation services for an injured employee; provided that the provider determines that the injured employee will likely require vocational rehabilitation services to return to suitable gainful employment, and the initial evaluation report finds the injured employee feasible to participate.

     [(e)] (f)  A provider shall file the employee's vocational rehabilitation plan with the approval of the employee[.] no later than one hundred twenty days after the provider submits an initial evaluation report; provided that the director may grant an extension in the director's discretion.  Upon receipt of the vocational rehabilitation plan from the provider, an employee shall have ten days to review and sign the vocational rehabilitation plan.  The vocational rehabilitation plan shall be submitted to the employer and the employee and be filed with the director within two days from the date of the employee's signature.  A vocational rehabilitation plan shall include a statement of the feasibility of the vocational goal, using the process of:

     (1)  First determining if the employee's usual and customary employment represents suitable gainful employment, and, should it not;

     (2)  Next determining if modified work or other work with the same employer represents suitable gainful employment, and, should it not;

     (3)  Next determining if modified or other employment with a different employer represents suitable gainful employment, [and finally,] and, should it not;

     (4)  Then providing training to obtain employment in another occupational field.  When training to obtain employment in another occupational field is required, the first appropriate option among the following options shall be selected for the employee:

          (A)  On-the-job training;

          (B)  Short-term retraining program (less than fifty‑two weeks); or

          (C)  Long-term retraining program (more than fifty-two weeks); and

     (5)  [Lastly, if] If training under paragraph (4) is not feasible, then self-employment may be considered.

     [(f)] (g)  A vocational rehabilitation plan may be approved by the director; provided that the vocational rehabilitation plan includes:

     (1)  A physician's assessment of the employee's physical limitations, psychological limitations, and ability to return to work.  If this information is not provided by the treating physician within a reasonable amount of time, information from another physician shall be accepted;

     (2)  A labor market survey indicating there are reasonable assurances that the proposed occupation for which the employee is to be placed or trained is readily available in the community when placement begins, or there are assurances of reemployment by the employer;

     (3)  A job analysis of the proposed occupation, setting forth its duties, responsibilities, physical demands, environmental working conditions, specific qualifications needed for entry-level employment, reasonable accommodations, expected estimated earnings, and other relevant information;

     (4)  The nature and extent of the vocational rehabilitation services to be provided, including:

          (A)  Specific services to be provided;

          (B)  Justification for the necessity of the services;

          (C)  Estimated time frames for delivery of services;

          (D)  The manner in which the effectiveness of these services is to be measured;

          (E)  Criteria for determining successful completion of the vocational rehabilitation plan; and

          (F)  The employee's responsibilities;

     (5)  A report of tests and copies thereof that have been administered to the employee, including a statement regarding the need for and use of the tests to identify a vocational goal;

     (6)  If retraining, including on-the-job training, is found to be necessary, the estimated cost of retraining, a description of specific skills to be learned or knowledge acquired with specific time periods and clearly defined measurements of success, and the nature, amount, and duration of living expenses;

     (7)  The total cost of the vocational rehabilitation plan; and

     (8)  The employee's approval of the vocational rehabilitation plan.

     [(g)] (h)  The employer shall have ten calendar days from [the postmark date on which the plan was mailed] the receipt of the vocational rehabilitation plan to submit in writing to the director any objections to the vocational rehabilitation plan.  A vocational rehabilitation plan shall be deemed received by an employer when it is transmitted with reasonable evidence of receipt.

     [(h)] (i)  The director may approve a vocational rehabilitation plan that does not include all of the requirements outlined in subsection [(f);] (g); provided that the director finds the vocational rehabilitation plan:

     (1)  Is in the best interest of the employee;

     (2)  Contains reasonable assurances that the employee will be placed in suitable gainful employment; and

     (3)  Has been approved by the employee.

     [(i)] (j)  If the vocational rehabilitation plan requires the purchase of any tools, supplies, or equipment, the purchase deadline shall be included in the vocational rehabilitation plan.  Tools, supplies, and equipment shall be considered to be the property of the employer until the vocational rehabilitation plan is determined by the director to be successfully completed, after which it shall become the property of the employee.  If the vocational rehabilitation plan requires the purchase, [etc.,] the employer shall purchase the items [prior to] before the purchase deadline in the vocational rehabilitation plan.

     [(j)] (k)  An employee with an approved vocational rehabilitation plan who is determined as able to return to usual and customary employment may choose to complete the vocational rehabilitation plan or request a new vocational rehabilitation plan of which the goal may be the employee's usual and customary employment.

     [(k)] (l)  An injured employee's enrollment in a vocational rehabilitation plan or program shall not affect the employee's entitlement to temporary total disability compensation if the employee earns no wages during the period of enrollment.  If the employee receives wages for work performed under the vocational rehabilitation plan or program, the employee shall be entitled to temporary total disability compensation in an amount equal to the difference between the employee's average weekly wages at the time of injury and the wages received under the vocational rehabilitation plan or program, subject to the limitations on weekly benefit rates prescribed in section 386-31(a).  The employee shall not be entitled to temporary total disability compensation for any week during this period where the wages equal or exceed the average weekly wages at the time of injury.

     [(l)] (m)  The director shall adopt rules for additional living expenses necessitated by the vocational rehabilitation plan or program, together with all reasonable and necessary vocational training.

     [(m)] (n)  If the rehabilitation unit determines that vocational rehabilitation is not possible or feasible, it shall certify the determination to the director.

     [(n)] (o)  Except as otherwise provided, determinations of the rehabilitation unit shall be final unless a written request for reconsideration is filed with the rehabilitation unit within ten calendar days of the date of the determination.

     The rehabilitation unit shall issue a reconsideration determination to affirm, reverse, or modify the determination or refer the request for reconsideration for hearing.

     [(o)] (p)  A reconsideration determination shall be final unless a written request for hearing is filed within ten calendar days from the date of the reconsideration determination.  All hearings shall be held before a hearings officer designated by the director.  A written decision shall be issued in the name of the director.

     [(p)] (q)  The eligibility of any injured employee to receive other benefits under this chapter shall in no way be affected by the employee's [entrance upon a course of] enrollment in a vocational rehabilitation plan or program as [herein] provided[.] in this section.

     [(q)] (r)  Vocational rehabilitation services for the purpose of developing a vocational rehabilitation plan may be approved by the director and the director may periodically review progress in each case."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on January 1, 2077.

Report Title:

Department of Labor and Industrial Relations; Workers' Compensation; Vocational Rehabilitation Services; Certified Providers; Automatic Approval

Description:

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.  Effective 1/1/2077.  (SD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

RELATING TO WORKERS' COMPENSATION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that early intervention is vital to ensure the efficient and effective rehabilitation of employees who suffer a work-related injury.  This often begins with the referral of an injured employee for vocational rehabilitation services.  Vocational rehabilitation services are intended to help the employee return to work as quickly as possible with pay as close as possible to pre-injury wages.  Urgency is needed when initiating the vocational rehabilitation process to avoid prolonged adverse effects on injured employees and minimize costs for employers and insurers.

     The legislature further finds that it is crucial for injured employees to have access to appropriate vocational rehabilitation services in the State.  Many vocational rehabilitation providers have expressed concern regarding the future availability of services as providers retire or leave the practice.  It is important for current and future providers to be properly trained on the vocational rehabilitation process.

     Accordingly, the purpose of this Act is to:

     (1)  Clarify the process for selecting a certified provider of vocational rehabilitation services;

     (2)  Require a provider to automatically approve an injured employee for vocational rehabilitation services if the provider determines that the injured employee will likely require vocational rehabilitation services to return to suitable gainful employment; and

     (3)  Clarify the process for an employer to object to a vocational rehabilitation plan.

     SECTION 2.  Section 386-25, Hawaii Revised Statutes, is amended to read as follows:

     "§386-25  Vocational rehabilitation.  (a)  The purposes of vocational rehabilitation are to restore an injured worker's earnings capacity as nearly as possible to that level that the worker was earning at the time of injury and to return the injured worker to suitable gainful employment in the active labor force as quickly as possible in a cost-effective manner.  Vocational rehabilitation shall not be available for public employees who have retired from a public employer, as defined in section 76-11, with whom they sustained their work injury.

     Employees of public employers, as defined in section 76-11, who are eligible for their respective public employer's return to work program, shall participate in and complete the return to work program, including temporary light duty placement efforts, as a prerequisite to vocational rehabilitation benefits under this section.

     (b)  The director may refer employees who may have or have suffered permanent disability as a result of work injuries and who, in the director's opinion, can be vocationally rehabilitated to the department of human services or to private providers of rehabilitation services for vocational rehabilitation services that are feasible.  A referral shall be made upon recommendation of the rehabilitation unit established under section 386-71.5 and after the employee has been deemed physically able to participate in rehabilitation by the employee's attending physician.  The unit shall include appropriate professional staff and shall have the following duties and responsibilities:

     (1)  To review and approve vocational rehabilitation plans developed by certified providers of vocational rehabilitation services, whether they be private or public;

     (2)  To adopt rules consistent with this section that shall expedite and facilitate the identification, notification, and referral of industrially injured employees to vocational rehabilitation services, and establish minimum standards for providers providing vocational rehabilitation services under this section;

     (3)  To certify private and public providers of vocational rehabilitation services meeting the minimum standards established under paragraph (2); and

     (4)  To enforce the implementation of vocational rehabilitation plans.

     (c)  Enrollment in a vocational rehabilitation plan or program shall not be mandatory and the approval of a proposed vocational rehabilitation plan or program by the injured employee shall be required.  [The] If the injured employee elects to enroll in a vocational rehabilitation plan or program, the injured employee [may] shall select a certified provider of vocational rehabilitation services[.  Both] no later than thirty days after the referral is made.  Once the injured employee selects a certified provider, both the certified provider and the injured employee[, within a reasonable time after initiating rehabilitation services,] shall give proper notice of selection to the employer[.] within seven days.  If the injured employee fails to select a certified provider within thirty days, the employer shall select the certified provider of vocational rehabilitation services and give proper notice of selection to the injured employee.

     (d)  A provider shall submit an initial evaluation report of the employee to the employer and the director within forty‑five days of the date of referral or selection.  The evaluation shall determine whether the employee requires vocational rehabilitation services to return to suitable gainful employment, identify the necessary services, and state whether the provider can provide these services.  The initial evaluation report shall contain:

     (1)  An assessment of the employee's:

          (A)  Current medical status;

          (B)  Primary disability;

          (C)  Secondary disability;

          (D)  Disabilities that are not related to the work injury; and

          (E)  Physical or psychological limitations, or both.

          If this information is not provided by the treating physician within a reasonable amount of time, information from another physician shall be accepted;

     (2)  A job analysis addressing the demands of the employee's employment;

     (3)  A statement from the provider identifying the employee's vocational handicaps in relation to the employee's ability to:

          (A)  Return to usual and customary employment; and

          (B)  Participate in and benefit from a vocational rehabilitation plan or program;

     (4)  A statement from the provider determining the feasibility of vocational rehabilitation services, including:

          (A)  The provider's ability to assist the employee in the employee's efforts to return to suitable gainful employment;

          (B)  An outline of specific vocational rehabilitation services to be provided, justification for the necessity of services, and how the effectiveness of these services is measured; and

          (C)  How the vocational rehabilitation services directly relate to the employee obtaining suitable gainful employment; and

     (5)  The enrollment form and the statement of worker's rights and responsibilities form obtained from the department.

     (e)  A provider shall automatically approve vocational rehabilitation services for an injured employee; provided that the provider determines that the injured employee will likely require vocational rehabilitation services to return to suitable gainful employment, and the initial evaluation report finds the injured employee feasible to participate.

     [(e)] (f)  A provider shall file the employee's vocational rehabilitation plan with the approval of the employee[.] no later than one hundred twenty days after the provider submits an initial evaluation report; provided that the director may provide an extension in the director's discretion.  Upon receipt of the vocational rehabilitation plan from the provider, an employee shall have ten days to review and sign the vocational rehabilitation plan.  The vocational rehabilitation plan shall be submitted to the employer and the employee and be filed with the director within two days from the date of the employee's signature.  A vocational rehabilitation plan shall include a statement of the feasibility of the vocational goal, using the process of:

     (1)  First determining if the employee's usual and customary employment represents suitable gainful employment, and, should it not;

     (2)  Next determining if modified work or other work with the same employer represents suitable gainful employment, and, should it not;

     (3)  Next determining if modified or other employment with a different employer represents suitable gainful employment, [and finally,] and, should it not;

     (4)  Then providing training to obtain employment in another occupational field.  When training to obtain employment in another occupational field is required, the first appropriate option among the following options shall be selected for the employee:

          (A)  On-the-job training;

          (B)  Short-term retraining program (less than fifty‑two weeks); or

          (C)  Long-term retraining program (more than fifty-two weeks); and

     (5)  Lastly, if training under paragraph (4) is not feasible, then self-employment may be considered.

     [(f)] (g)  A vocational rehabilitation plan may be approved by the director; provided that the vocational rehabilitation plan includes:

     (1)  A physician's assessment of the employee's physical limitations, psychological limitations, and ability to return to work.  If this information is not provided by the treating physician within a reasonable amount of time, information from another physician shall be accepted;

     (2)  A labor market survey indicating there are reasonable assurances that the proposed occupation for which the employee is to be placed or trained is readily available in the community when placement begins, or there are assurances of reemployment by the employer;

     (3)  A job analysis of the proposed occupation, setting forth its duties, responsibilities, physical demands, environmental working conditions, specific qualifications needed for entry-level employment, reasonable accommodations, expected estimated earnings, and other relevant information;

     (4)  The nature and extent of the vocational rehabilitation services to be provided, including:

          (A)  Specific services to be provided;

          (B)  Justification for the necessity of the services;

          (C)  Estimated time frames for delivery of services;

          (D)  The manner in which the effectiveness of these services is to be measured;

          (E)  Criteria for determining successful completion of the vocational rehabilitation plan; and

          (F)  The employee's responsibilities;

     (5)  A report of tests and copies thereof that have been administered to the employee, including a statement regarding the need for and use of the tests to identify a vocational goal;

     (6)  If retraining, including on-the-job training, is found to be necessary, the estimated cost of retraining, a description of specific skills to be learned or knowledge acquired with specific time periods and clearly defined measurements of success, and the nature, amount, and duration of living expenses;

     (7)  The total cost of the vocational rehabilitation plan; and

     (8)  The employee's approval of the vocational rehabilitation plan.

     [(g)] (h)  The employer shall have ten calendar days from [the postmark date on which the plan was mailed] the receipt of the vocational rehabilitation plan to submit in writing to the director any objections to the vocational rehabilitation plan.  A vocational rehabilitation plan shall be deemed received by an employer when the vocational rehabilitation plan is transmitted with reasonable evidence showing that the vocational rehabilitation plan was received.

     [(h)] (i)  The director may approve a vocational rehabilitation plan that does not include all of the requirements outlined in subsection [(f);] (g); provided that the director finds the vocational rehabilitation plan:

     (1)  Is in the best interest of the employee;

     (2)  Contains reasonable assurances that the employee will be placed in suitable gainful employment; and

     (3)  Has been approved by the employee.

     [(i)] (j)  If the vocational rehabilitation plan requires the purchase of any tools, supplies, or equipment, the purchase deadline shall be included in the vocational rehabilitation plan.  Tools, supplies, and equipment shall be considered to be the property of the employer until the vocational rehabilitation plan is determined by the director to be successfully completed, after which it shall become the property of the employee.  If the vocational rehabilitation plan requires the purchase, etc., the employer shall purchase the items [prior to] before the purchase deadline in the vocational rehabilitation plan.

     [(j)] (k)  An employee with an approved vocational rehabilitation plan who is determined as able to return to usual and customary employment may choose to complete the vocational rehabilitation plan or request a new vocational rehabilitation plan of which the goal may be the employee's usual and customary employment.

     [(k)] (l)  An injured employee's enrollment in a vocational rehabilitation plan or program shall not affect the employee's entitlement to temporary total disability compensation if the employee earns no wages during the period of enrollment.  If the employee receives wages for work performed under the vocational rehabilitation plan or program, the employee shall be entitled to temporary total disability compensation in an amount equal to the difference between the employee's average weekly wages at the time of injury and the wages received under the vocational rehabilitation plan or program, subject to the limitations on weekly benefit rates prescribed in section 386-31(a).  The employee shall not be entitled to temporary total disability compensation for any week during this period where the wages equal or exceed the average weekly wages at the time of injury.

     [(l)] (m)  The director shall adopt rules for additional living expenses necessitated by the vocational rehabilitation plan or program, together with all reasonable and necessary vocational training.

     [(m)] (n)  If the rehabilitation unit determines that vocational rehabilitation is not possible or feasible, it shall certify the determination to the director.

     [(n)] (o)  Except as otherwise provided, determinations of the rehabilitation unit shall be final unless a written request for reconsideration is filed with the rehabilitation unit within ten calendar days of the date of the determination.

     The rehabilitation unit shall issue a reconsideration determination to affirm, reverse, or modify the determination or refer the request for reconsideration for hearing.

     [(o)] (p)  A reconsideration determination shall be final unless a written request for hearing is filed within ten calendar days from the date of the reconsideration determination.  All hearings shall be held before a hearings officer designated by the director.  A written decision shall be issued in the name of the director.

     [(p)] (q)  The eligibility of any injured employee to receive other benefits under this chapter shall in no way be affected by the employee's entrance upon a course of vocational rehabilitation as [herein] provided[.] in this section.

     [(q)] (r)  Vocational rehabilitation services for the purpose of developing a vocational rehabilitation plan may be approved by the director and the director may periodically review progress in each case."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 3000.

Report Title:

DLIR; Workers' Compensation; Vocational Rehabilitation Services; Certified Providers; Automatic Approval

Description:

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.  Effective 7/1/3000.  (HD2)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

RELATING TO WORKERS' COMPENSATION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that early intervention is vital to ensure the efficient and effective rehabilitation of employees who suffer a work-related injury.  This often begins with the referral of an injured employee for vocational rehabilitation services.  Vocational rehabilitation services are intended to help the employee return to work as quickly as possible with pay as close as possible to pre-injury wages.  Urgency is needed when initiating the vocational rehabilitation process to avoid prolonged adverse effects on injured employees and minimize costs for employers and insurers.

     The legislature further finds that it is crucial for injured employees to have access to appropriate vocational rehabilitation services in the State.  Many vocational rehabilitation providers have expressed concern regarding the future availability of services as providers retire or leave the practice.  It is important for current and future providers to be properly trained on the vocational rehabilitation process.

     Accordingly, the purpose of this Act is to:

     (1)  Clarify the process for selecting a certified provider of rehabilitation services; and

     (2)  Require a provider to automatically approve an injured employee for vocational rehabilitation services if the provider determines that the injured employee will likely require vocational rehabilitation services to return to suitable gainful employment.

     SECTION 2.  Section 386-25, Hawaii Revised Statutes, is amended to read as follows:

     "§386-25  Vocational rehabilitation.  (a)  The purposes of vocational rehabilitation are to restore an injured worker's earnings capacity as nearly as possible to that level that the worker was earning at the time of injury and to return the injured worker to suitable gainful employment in the active labor force as quickly as possible in a cost-effective manner.  Vocational rehabilitation shall not be available for public employees who have retired from a public employer, as defined in section 76-11, with whom they sustained their work injury.

     Employees of public employers, as defined in section 76-11, who are eligible for their respective public employer's return to work program, shall participate in and complete the return to work program, including temporary light duty placement efforts, as a prerequisite to vocational rehabilitation benefits under this section.

     (b)  The director may refer employees who may have or have suffered permanent disability as a result of work injuries and who, in the director's opinion, can be vocationally rehabilitated to the department of human services or to private providers of rehabilitation services for vocational rehabilitation services that are feasible.  A referral shall be made upon recommendation of the rehabilitation unit established under section 386-71.5 and after the employee has been deemed physically able to participate in rehabilitation by the employee's attending physician.  The unit shall include appropriate professional staff and shall have the following duties and responsibilities:

     (1)  To review and approve rehabilitation plans developed by certified providers of rehabilitation services, whether they be private or public;

     (2)  To adopt rules consistent with this section that shall expedite and facilitate the identification, notification, and referral of industrially injured employees to rehabilitation services, and establish minimum standards for providers providing rehabilitation services under this section;

     (3)  To certify private and public providers of rehabilitation services meeting the minimum standards established under paragraph (2); and

     (4)  To enforce the implementation of rehabilitation plans.

     (c)  Enrollment in a rehabilitation plan or program shall not be mandatory and the approval of a proposed rehabilitation plan or program by the injured employee shall be required.  [The] If the injured employee elects to enroll in a rehabilitation plan or program, the injured employee [may] shall select a certified provider of rehabilitation services[.] no later than thirty days after the referral is made by the director.  Both the certified provider and the injured employee, within a reasonable time after initiating rehabilitation services[,] or after the employee self-refers, shall give proper notice of selection to the employer.  If the injured employee fails to select a certified provider within thirty days, the director shall select the certified provider of rehabilitation services and give proper notice of selection to the employee.

     (d)  A provider shall submit an initial evaluation report of the employee to the employer and the director within forty‑five days of the date of referral or selection.  The evaluation shall determine whether the employee requires vocational rehabilitation services to return to suitable gainful employment, identify the necessary services, and state whether the provider can provide these services.  The initial evaluation report shall contain:

     (1)  An assessment of the employee's:

          (A)  Current medical status;

          (B)  Primary disability;

          (C)  Secondary disability;

          (D)  Disabilities that are not related to the work injury; and

          (E)  Physical or psychological limitations, or both.

          If this information is not provided by the treating physician within a reasonable amount of time, information from another physician shall be accepted;

     (2)  A job analysis addressing the demands of the employee's employment;

     (3)  A statement from the provider identifying the employee's vocational handicaps in relation to the employee's ability to:

          (A)  Return to usual and customary employment; and

          (B)  Participate in and benefit from a vocational rehabilitation program;

     (4)  A statement from the provider determining the feasibility of vocational rehabilitation services, including:

          (A)  The provider's ability to assist the employee in the employee's efforts to return to suitable gainful employment;

          (B)  An outline of specific vocational rehabilitation services to be provided, justification for the necessity of services, and how the effectiveness of these services is measured; and

          (C)  How the vocational rehabilitation services directly relate to the employee obtaining suitable gainful employment; and

     (5)  The enrollment form and the statement of worker's rights and responsibilities form obtained from the department.

     (e)  A provider shall automatically approve vocational rehabilitation services for an injured employee; provided that the provider determines that the injured employee will likely require vocational rehabilitation services to return to suitable gainful employment.

     [(e)] (f)  A provider shall file the employee's plan with the approval of the employee[.] no later than ninety days after the provider submits an initial evaluation report, unless the employer, provider, and injured employee agree to an extension of that deadline to a specific date by which the plan shall be completed.  Upon receipt of the plan from the provider, an employee shall have ten days to review and sign the plan.  The plan shall be submitted to the employer and the employee and be filed with the director within two days from the date of the employee's signature.  A plan shall include a statement of the feasibility of the vocational goal, using the process of:

     (1)  First determining if the employee's usual and customary employment represents suitable gainful employment, and, should it not;

     (2)  Next determining if modified work or other work with the same employer represents suitable gainful employment, and, should it not;

     (3)  Next determining if modified or other employment with a different employer represents suitable gainful employment, [and finally,] and, should it not;

     (4)  Then providing training to obtain employment in another occupational field.  When training to obtain employment in another occupational field is required, the first appropriate option among the following options shall be selected for the employee:

          (A)  On-the-job training;

          (B)  Short-term retraining program (less than fifty‑two weeks); or

          (C)  Long-term retraining program (more than fifty-two weeks); and

     (5)  Lastly, if training under paragraph (4) is not feasible, then self-employment may be considered.

     [(f)] (g)  A plan may be approved by the director; provided that the plan includes:

     (1)  A physician's assessment of the employee's physical limitations, psychological limitations, and ability to return to work.  If this information is not provided by the treating physician within a reasonable amount of time, information from another physician shall be accepted;

     (2)  A labor market survey indicating there are reasonable assurances that the proposed occupation for which the employee is to be placed or trained is readily available in the community when placement begins, or there are assurances of reemployment by the employer;

     (3)  A job analysis of the proposed occupation, setting forth its duties, responsibilities, physical demands, environmental working conditions, specific qualifications needed for entry-level employment, reasonable accommodations, expected estimated earnings, and other relevant information;

     (4)  The nature and extent of the vocational rehabilitation services to be provided, including:

          (A)  Specific services to be provided;

          (B)  Justification for the necessity of the services;

          (C)  Estimated time frames for delivery of services;

          (D)  The manner in which the effectiveness of these services is to be measured;

          (E)  Criteria for determining successful completion of the vocational rehabilitation plan; and

          (F)  The employee's responsibilities;

     (5)  A report of tests and copies thereof that have been administered to the employee, including a statement regarding the need for and use of the tests to identify a vocational goal;

     (6)  If retraining, including on-the-job training, is found to be necessary, the estimated cost of retraining, a description of specific skills to be learned or knowledge acquired with specific time periods and clearly defined measurements of success, and the nature, amount, and duration of living expenses;

     (7)  The total cost of the plan; and

     (8)  The employee's approval of the plan.

     [(g)] (h)  The employer shall have ten calendar days from [the postmark date on which the plan was mailed] the receipt of the plan to submit in writing to the director any objections to the plan.  A rehabilitation plan shall be deemed received by an employer when the plan is transmitted with reasonable evidence showing that the plan was received.

     [(h)] (i)  The director may approve a plan that does not include all of the requirements outlined in subsection [(f);] (g); provided that the director finds the plan:

     (1)  Is in the best interest of the employee;

     (2)  Contains reasonable assurances that the employee will be placed in suitable gainful employment; and

     (3)  Has been approved by the employee.

     [(i)] (j)  If the plan requires the purchase of any tools, supplies, or equipment, the purchase deadline shall be included in the plan.  Tools, supplies, and equipment shall be considered to be the property of the employer until the plan is determined by the director to be successfully completed, after which it shall become the property of the employee.  If the plan requires the purchase, etc., the employer shall purchase the items [prior to] before the purchase deadline in the plan.

     [(j)] (k)  An employee with an approved plan who is determined as able to return to usual and customary employment may choose to complete the plan or request a new plan of which the goal may be the employee's usual and customary employment.

     [(k)] (l)  An injured employee's enrollment in a rehabilitation plan or program shall not affect the employee's entitlement to temporary total disability compensation if the employee earns no wages during the period of enrollment.  If the employee receives wages for work performed under the plan or program, the employee shall be entitled to temporary total disability compensation in an amount equal to the difference between the employee's average weekly wages at the time of injury and the wages received under the plan or program, subject to the limitations on weekly benefit rates prescribed in section 386-31(a).  The employee shall not be entitled to temporary total disability compensation for any week during this period where the wages equal or exceed the average weekly wages at the time of injury.

     [(l)] (m)  The director shall adopt rules for additional living expenses necessitated by the rehabilitation program, together with all reasonable and necessary vocational training.

     [(m)] (n)  If the rehabilitation unit determines that vocational rehabilitation is not possible or feasible, it shall certify the determination to the director.

     [(n)] (o)  Except as otherwise provided, determinations of the rehabilitation unit shall be final unless a written request for reconsideration is filed with the rehabilitation unit within ten calendar days of the date of the determination.

     The rehabilitation unit shall issue a reconsideration determination to affirm, reverse, or modify the determination or refer the request for reconsideration for hearing.

     [(o)] (p)  A reconsideration determination shall be final unless a written request for hearing is filed within ten calendar days from the date of the reconsideration determination.  All hearings shall be held before a hearings officer designated by the director.  A written decision shall be issued in the name of the director.

     [(p)] (q)  The eligibility of any injured employee to receive other benefits under this chapter shall in no way be affected by the employee's entrance upon a course of vocational rehabilitation as [herein] provided[.] in this section.

     [(q)] (r)  Vocational rehabilitation services for the purpose of developing a vocational rehabilitation plan may be approved by the director and the director may periodically review progress in each case."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 3000.

Report Title:

Workers' Compensation; Vocational Rehabilitation Services; Certified Providers; Automatic Approval

Description:

Clarifies the process for selecting a certified provider of rehabilitation services.  Requires providers to automatically approve vocational rehabilitation services for an injured employee if those services will likely be required for suitable gainful employment.  Requires providers to file an employee's vocational plan no later than ninety days after submitting an initial evaluation report, with certain exceptions.  Specifies when a rehabilitation plan is considered received by an employer.  Effective 7/1/3000.  (HD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

relating to workers' compensation.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that early intervention is vital to ensure the efficient and effective rehabilitation of employees who suffer a work-related injury.  This often begins with the referral of an injured employee for vocational rehabilitation services.  Vocational rehabilitation services are intended to help the employee return to work as quickly as possible with pay as close as possible to pre-injury wages.  Urgency is needed when initiating the vocational rehabilitation process to avoid prolonged adverse effects on injured employees and minimize costs for employers and insurers.

     The legislature further finds that it is crucial for injured employees to have access to appropriate vocational rehabilitation services in the State.  Many vocational rehabilitation providers have expressed concern regarding the future availability of services as several providers retire or leave the practice.  It is important for current and future providers to be properly trained on the vocational rehabilitation process.

     Accordingly, the purpose of this Act is to:

     (1)  Clarify the process for selecting a certified provider of rehabilitation services; and

     (2)  Require a provider to automatically approve an injured employee for vocational rehabilitation services if the provider determines that the injured employee will likely require vocational rehabilitation services to return to suitable gainful employment.

     SECTION 2.  Section 386-25, Hawaii Revised Statutes, is amended to read as follows:

     "§386-25  Vocational rehabilitation.  (a)  The purposes of vocational rehabilitation are to restore an injured worker's earnings capacity as nearly as possible to that level that the worker was earning at the time of injury and to return the injured worker to suitable gainful employment in the active labor force as quickly as possible in a cost-effective manner.  Vocational rehabilitation shall not be available for public employees who have retired from a public employer, as defined in section 76-11, with whom they sustained their work injury.

     Employees of public employers, as defined in section 76-11, who are eligible for their respective public employer's return to work program, shall participate in and complete the return to work program, including temporary light duty placement efforts, as a prerequisite to vocational rehabilitation benefits under this section.

     (b)  The director may refer employees who may have or have suffered permanent disability as a result of work injuries and who, in the director's opinion, can be vocationally rehabilitated to the department of human services or to private providers of rehabilitation services for vocational rehabilitation services that are feasible.  A referral shall be made upon recommendation of the rehabilitation unit established under section 386-71.5 and after the employee has been deemed physically able to participate in rehabilitation by the employee's attending physician.  The unit shall include appropriate professional staff and shall have the following duties and responsibilities:

     (1)  To review and approve rehabilitation plans developed by certified providers of rehabilitation services, whether they be private or public;

     (2)  To adopt rules consistent with this section that shall expedite and facilitate the identification, notification, and referral of industrially injured employees to rehabilitation services, and establish minimum standards for providers providing rehabilitation services under this section;

     (3)  To certify private and public providers of rehabilitation services meeting the minimum standards established under paragraph (2); and

     (4)  To enforce the implementation of rehabilitation plans.

     (c)  Enrollment in a rehabilitation plan or program shall not be mandatory and the approval of a proposed rehabilitation plan or program by the injured employee shall be required.  [The] If the injured employee elects to enroll in a rehabilitation plan or program, the injured employee [may] shall select a certified provider of rehabilitation services[.] no later than thirty days after the referral is made by the director.  Both the certified provider and the injured employee, within a reasonable time after initiating rehabilitation services, shall give proper notice of selection to the employer.  If the injured employee fails to select a certified provider within thirty days, the employer shall select the certified provider of rehabilitation services and give proper notice of selection to the employee.  The injured employee shall have thirty days after the notice of selection is received to select a different certified provider of rehabilitation services.

     (d)  A provider shall submit an initial evaluation report of the employee to the employer and the director within forty‑five days of the date of referral or selection.  The evaluation shall determine whether the employee requires vocational rehabilitation services to return to suitable gainful employment, identify the necessary services, and state whether the provider can provide these services.  The initial evaluation report shall contain:

     (1)  An assessment of the employee's:

          (A)  Current medical status;

          (B)  Primary disability;

          (C)  Secondary disability;

          (D)  Disabilities that are not related to the work injury; and

          (E)  Physical or psychological limitations, or both.

          If this information is not provided by the treating physician within a reasonable amount of time, information from another physician shall be accepted;

     (2)  A job analysis addressing the demands of the employee's employment;

     (3)  A statement from the provider identifying the employee's vocational handicaps in relation to the employee's ability to:

          (A)  Return to usual and customary employment; and

          (B)  Participate in and benefit from a vocational rehabilitation program;

     (4)  A statement from the provider determining the feasibility of vocational rehabilitation services, including:

          (A)  The provider's ability to assist the employee in the employee's efforts to return to suitable gainful employment;

          (B)  An outline of specific vocational rehabilitation services to be provided, justification for the necessity of services, and how the effectiveness of these services is measured; and

          (C)  How the vocational rehabilitation services directly relate to the employee obtaining suitable gainful employment; and

     (5)  The enrollment form and the statement of worker's rights and responsibilities form obtained from the department.

     (e)  A provider shall automatically approve vocational rehabilitation services for an injured employee; provided that the provider determines that the injured employee will likely require vocational rehabilitation services to return to suitable gainful employment.

     [(e)] (f)  A provider shall file the employee's plan with the approval of the employee[.] no later than ninety days after the provider submits an initial evaluation report, unless the employer, provider, and injured employee agree to an extension of that deadline to a specific date by which the plan shall be completed.  Upon receipt of the plan from the provider, an employee shall have ten days to review and sign the plan.  The plan shall be submitted to the employer and the employee and be filed with the director within two days from the date of the employee's signature.  A plan shall include a statement of the feasibility of the vocational goal, using the process of:

     (1)  First determining if the employee's usual and customary employment represents suitable gainful employment, and, should it not;

     (2)  Next determining if modified work or other work with the same employer represents suitable gainful employment, and, should it not;

     (3)  Next determining if modified or other employment with a different employer represents suitable gainful employment, [and finally,] and, should it not;

     (4)  Then providing training to obtain employment in another occupational field.  When training to obtain employment in another occupational field is required, the first appropriate option among the following options shall be selected for the employee:

          (A)  On-the-job training;

          (B)  Short-term retraining program (less than fifty‑two weeks); or

          (C)  Long-term retraining program (more than fifty-two weeks); and

     (5)  Lastly, if training under paragraph (4) is not feasible, then self-employment may be considered.

     [(f)] (g)  A plan may be approved by the director; provided that the plan includes:

     (1)  A physician's assessment of the employee's physical limitations, psychological limitations, and ability to return to work.  If this information is not provided by the treating physician within a reasonable amount of time, information from another physician shall be accepted;

     (2)  A labor market survey indicating there are reasonable assurances that the proposed occupation for which the employee is to be placed or trained is readily available in the community when placement begins, or there are assurances of reemployment by the employer;

     (3)  A job analysis of the proposed occupation, setting forth its duties, responsibilities, physical demands, environmental working conditions, specific qualifications needed for entry-level employment, reasonable accommodations, expected estimated earnings, and other relevant information;

     (4)  The nature and extent of the vocational rehabilitation services to be provided, including:

          (A)  Specific services to be provided;

          (B)  Justification for the necessity of the services;

          (C)  Estimated time frames for delivery of services;

          (D)  The manner in which the effectiveness of these services is to be measured;

          (E)  Criteria for determining successful completion of the vocational rehabilitation plan; and

          (F)  The employee's responsibilities;

     (5)  A report of tests and copies thereof that have been administered to the employee, including a statement regarding the need for and use of the tests to identify a vocational goal;

     (6)  If retraining, including on-the-job training, is found to be necessary, the estimated cost of retraining, a description of specific skills to be learned or knowledge acquired with specific time periods and clearly defined measurements of success, and the nature, amount, and duration of living expenses;

     (7)  The total cost of the plan; and

     (8)  The employee's approval of the plan.

     [(g)] (h)  The employer shall have ten calendar days from the postmark date on which the plan was mailed to submit in writing to the director any objections to the plan.

     [(h)] (i)  The director may approve a plan that does not include all of the requirements outlined in subsection [(f);] (g); provided that the director finds the plan:

     (1)  Is in the best interest of the employee;

     (2)  Contains reasonable assurances that the employee will be placed in suitable gainful employment; and

     (3)  Has been approved by the employee.

     [(i)] (j)  If the plan requires the purchase of any tools, supplies, or equipment, the purchase deadline shall be included in the plan.  Tools, supplies, and equipment shall be considered to be the property of the employer until the plan is determined by the director to be successfully completed, after which it shall become the property of the employee.  If the plan requires the purchase, etc., the employer shall purchase the items [prior to] before the purchase deadline in the plan.

     [(j)] (k)  An employee with an approved plan who is determined as able to return to usual and customary employment may choose to complete the plan or request a new plan of which the goal may be the employee's usual and customary employment.

     [(k)] (l)  An injured employee's enrollment in a rehabilitation plan or program shall not affect the employee's entitlement to temporary total disability compensation if the employee earns no wages during the period of enrollment.  If the employee receives wages for work performed under the plan or program, the employee shall be entitled to temporary total disability compensation in an amount equal to the difference between the employee's average weekly wages at the time of injury and the wages received under the plan or program, subject to the limitations on weekly benefit rates prescribed in section 386-31(a).  The employee shall not be entitled to temporary total disability compensation for any week during this period where the wages equal or exceed the average weekly wages at the time of injury.

     [(l)] (m)  The director shall adopt rules for additional living expenses necessitated by the rehabilitation program, together with all reasonable and necessary vocational training.

     [(m)] (n)  If the rehabilitation unit determines that vocational rehabilitation is not possible or feasible, it shall certify the determination to the director.

     [(n)] (o)  Except as otherwise provided, determinations of the rehabilitation unit shall be final unless a written request for reconsideration is filed with the rehabilitation unit within ten calendar days of the date of the determination.

     The rehabilitation unit shall issue a reconsideration determination to affirm, reverse, or modify the determination or refer the request for reconsideration for hearing.

     [(o)] (p)  A reconsideration determination shall be final unless a written request for hearing is filed within ten calendar days from the date of the reconsideration determination.  All hearings shall be held before a hearings officer designated by the director.  A written decision shall be issued in the name of the director.

     [(p)] (q)  The eligibility of any injured employee to receive other benefits under this chapter shall in no way be affected by the employee's entrance upon a course of vocational rehabilitation as [herein] provided[.] in this section.

     [(q)] (r)  Vocational rehabilitation services for the purpose of developing a vocational rehabilitation plan may be approved by the director and the director may periodically review progress in each case."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 2026.

Report Title:

Workers' Compensation; Vocational Rehabilitation Services; Certified Providers; Automatic Approval

Description:

Clarifies the process for selecting a certified provider of rehabilitation services.  Requires providers to automatically approve vocational rehabilitation services for an injured employee if those services will likely be required for suitable gainful employment.  Requires providers to file an employee's vocational plan no later than ninety days after submitting an initial evaluation report, with certain exceptions. 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

STAND. COM. REP. NO.  1050-26

Honolulu, Hawaii

                , 2026

RE:   H.B. No. 1514

      H.D. 2

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

     Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 1514, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO WORKERS' COMPENSATION,"

begs leave to report as follows:

     The purpose of this measure is, for purposes of vocational rehabilitation under workers' compensation law, to:

     (1)  Clarify the process for selecting a certified provider of vocational rehabilitation services;

     (2)  Require a certified provider to automatically approve an injured employee for vocational rehabilitation services if the provider determines that the injured employee will likely require vocational rehabilitation services to return to suitable gainful employment; and

     (3)  Clarify the process for an employer to object to a vocational rehabilitation plan.

     Your Committee received testimony in support of this measure from the Department of Labor and Industrial Relations; Department of Human Resources Development; Work Injury Medical Association of Hawaii; American Property Casualty Insurance Association; and one individual.  Your Committee received testimony in opposition to this measure from the Hawaii Insurers Council; Society for Human Resources Management – Hawaii; Hawaii Rehabilitation Counseling Association; International Association of Rehabilitation Professionals, Hawaii Chapter; and seven individuals.

     Your Committee finds that patients with work-related injury or illness need prompt evaluation, diagnosis, and treatment.  Timely access to a vocational rehabilitation program, typically provided by an occupational therapist as part of a public or private vocational rehabilitation agency, is necessary to support the patient's recovery and safe return to gainful employment to the best of their abilities.  This measure clarifies the process for vocational rehabilitation services following initial evaluation, allowing automatic approval for these needed, time-sensitive services that support patients with work-related illness or injury.

     Your Committee has amended this measure by:

     (1)  Requiring the certified provider and injured employee to provide proper notice to the employer of the selection of the certified provider within seven days;

     (2)  Specifying that the employer, not the Director of Labor and Industrial Relations, is to select a certified provider of vocational rehabilitation services when the employee fails to select a certified provider;

     (3)  Adding as a condition for automatic approval of vocational rehabilitation services that the initial evaluation report finds the injured employee is feasible to participate in the vocational rehabilitation services;

     (4)  Changing the deadline for a certified provider to file an employee's vocational rehabilitation plan from ninety days to one hundred twenty days;

     (5)  Allowing the Director of Labor and Industrial Relations to extend the one-hundred-twenty-day period at the Director's discretion, rather than allowing an extension on the agreement of the provider, employee, and employer; and

     (6)  Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1514, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1514, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

STAND. COM. REP. NO.  631-26

Honolulu, Hawaii

                , 2026

RE:   H.B. No. 1514

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

     Your Committee on Labor, to which was referred H.B. No. 1514 entitled:

"A BILL FOR AN ACT RELATING TO WORKERS' COMPENSATION,"

begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Clarify the process for selecting a certified provider of rehabilitation services;

     (2)  Require providers to automatically approve vocational rehabilitation services for an injured employee who will likely need those services to return to suitable gainful employment; and

     (3)  Require providers to file an employee's vocational plan within ninety days of submitting an initial evaluation report, with certain exceptions.

     Your Committee received testimony in support of this measure from the Department of Labor and Industrial Relations; Department of Human Resources Development; Hawaii Insurers Council; University of Hawaii Professional Assembly; Hawaii Medical Association; Work Injury Medical Association of Hawaii; American Property Casualty Insurance Association; and two individuals.  Your Committee received testimony in opposition to this measure from the International Association of Rehabilitation Professionals, Hawaii Chapter; Hawaii Rehabilitation Counseling Association; and seven individuals.

     Your Committee finds that delays in initiating vocational rehabilitation can prolong an injured employee's recovery and increase costs for employers and insurers.  Uncertainty about provider selection timelines and inconsistent access to trained vocational rehabilitation professionals have created barriers that slow the rehabilitation process.  This measure streamlines provider selection, ensures timely approval of necessary services, and strengthens the State's overall vocational rehabilitation system to help injured employees return to suitable gainful employment more efficiently.

     Your Committee has amended this measure by:

     (1)  Clarifying that the notice requirement of selection of a certified provider applies also when an injured employee self-refers for those services;

     (2)  Specifying that the Director of Labor and Industrial Relations, not the employer, will select the certified provider when the employee fails to do so;

     (3)  Deleting language that would have given an employee thirty days after the notice of selection is received to select a different certified provider of rehabilitations services;

     (4)  Clarifying when the employer is required to submit any objections to a rehabilitation plan;

     (5)  Specifying when a rehabilitation plan is deemed received by an employer;

     (6)  Changing the effective date to July 1, 3000, to encourage further discussion; and

     (7)  Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Labor that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1514, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1514, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Labor,