The mandate requires nearly all employers to provide health insurance to employees who work at least 20 hours a week for four consecutive weeks. It sets a minimum standard for benefits provided by employer-sponsored insurance and a maximum for employee contributions to healthcare premiums based on income. Hawaii was given a special exception to the federal Employer Retirement Income Security Act (ERISA). The mandate does not offer subsidies for insurance coverage, cover part-timers, dependents, or the unemployed. It operates through private insurers and does not cover publicly-managed or publicly-financed health insurance systems. The mandate was enacted in 1974 and requires all businesses except government services, seasonal employers, sole proprietors, and insurance and real estate employers who pay solely on commission to provide employer-sponsored health insurance to all employees who work 20 or more hours a week for at least four consecutive weeks. Employers who do not insure their workers are charged $1 per worker per day that they are uninsured in addition to any medical costs the workers incur. The benefits of employer-sponsored health insurance must be equal to those provided by the plan with the largest number of subscribers in Hawaii. The cost to employees is limited to 1.5% of the employee's monthly wages.
