Hawaii Revised Statutes 386-56 – Payment from the special compensation fund in case of default
Terms Used In Hawaii Revised Statutes 386-56
- Compensation: means all benefits accorded by this chapter to an employee or the employee's dependents on account of a work injury as defined in this section; it includes medical and rehabilitation benefits, income and indemnity benefits in cases of disability or death, and the allowance for funeral and burial expenses. See Hawaii Revised Statutes 386-1
- Contract: A legal written agreement that becomes binding when signed.
- Dependent: A person dependent for support upon another.
- Director: means the director of labor and industrial relations. See Hawaii Revised Statutes 386-1
- Employee: means any individual in the employment of another person. See Hawaii Revised Statutes 386-1
- Employer: means any person having one or more persons in the person's employment. See Hawaii Revised Statutes 386-1
Where an injured employee or the employee’s dependents fail to receive prompt and proper compensation and this default is caused through no fault of the employee, the director shall pay the full amount of all compensation awards and benefits from the special compensation fund to the employee or dependent.
The employer, upon order of the director, shall reimburse the special compensation fund for the sums paid therefrom under this section, and the fund, represented by the director, shall be subrogated to all the rights and remedies of the individual receiving the payments.
In case a defaulting employer moves to another state without reimbursing the special compensation fund, the director shall be authorized to contract, on a contingent fee basis, with a private collection agency in that state to effect collection from the employer.