SB 2663 Hawaii Senate · 2026 Regular Session

RELATING TO WORKERS' COMPENSATION.

Summary

Requires an employer to transmit written approval or denial of a treatment plan to the physician who transmitted the plan for approval within seven days of receipt of the plan. Clarifies provisions relating to denying a treatment plan, burden of proof, and objections. Establishes fines and requires the Director of Labor and Industrial Relations to assess penalties. Authorizes the Director to enforce penalties. Effective 1/1/2077. (SD1)

Issues: ✓ Labor & Employment

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2026

Committee Review

Feb 2026

Senate Passage

Feb 2026

House Passage

Governor

Introduced Jan 23, 2026 Last action Feb 11, 2026

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What changed between versions

SB2663 → SB2663_SD1 · 6 edits

MODERATE

This bill updates the legislative metadata to reflect its first Senate reading and amends workers' compensation laws to clarify employer obligations regarding treatment plans. The changes ensure that employers must pay for approved medical care even if they later object based on new evidence, shifting the burden of proof to the employer to justify denials. It also strengthens enforcement by authorizing the Director of Labor and Industrial Relations to impose and collect penalties, which are now deposited into the state's special compensation fund rather than paid directly to injured employees.

Scope change

The bill's applicability remains the same (workers' compensation), but the scope of employer obligations has expanded to include strict payment requirements during objection periods and new enforcement authority for the state director.

REQUIREMENT

Employers must continue paying for approved medical treatment even if they file an objection based on new evidence, with payment resuming only after a formal denial by the state director.

The burden of proof for denying a treatment plan now rests on the employer, who must provide a preponderance of medical evidence to justify the denial.

ENFORCEMENT

The Director of Labor and Industrial Relations is explicitly authorized to enforce penalties and assess fines for noncompliance.

Penalties can be enforced by either the injured employee or the Director if the employer fails to pay within thirty days.

FISCAL

Fines and penalties for violations are now deposited into the special compensation fund instead of being paid directly to the injured employee.

TIMELINE

The effective date of the Act is set to January 1, 2077.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 11, 2026

Upper · Passed

Report adopted; Passed Second Reading, as amended (SD 1) and referred to JDC/WAM.

upper

Feb 11, 2026

Committee

Reported from LBT (Stand. Com. Rep. No. 2168) with recommendation of passage on Second Reading, as amended (SD 1) and referral to JDC/WAM.

upper

Feb 2, 2026

Upper · Passed

The committee(s) on LBT recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in LBT were as follows: 4 Aye(s): Senator(s) Elefante, Lamosao, Ihara, Moriwaki; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Fevella.

upper

Jan 30, 2026

Upper · Passed

The committee(s) on LBT has scheduled a public hearing on 02-02-26 3:00PM; Conference Room 225 & Videoconference.

upper

Jan 28, 2026

Committee

Referred to LBT, JDC/WAM.

upper

Jan 23, 2026

Introduced

Introduced.

upper

5 primary · 0 co-sponsors