Hawaii PHC eligibility: 86.67x minimum wage monthly threshold
Hawaii's Prepaid Health Care Act (PHCA) mandates employer-provided health insurance for most employees. A key eligibility criterion is earning a monthly gross wage equivalent to at least 86.67 times the state's current minimum wage. This threshold dynamically adjusts with changes to Hawaii's minimum wage, requiring continuous monitoring for multi-state operators.
HI PHC eligibility — 86.67x minimum wage monthly threshold
HRS 393-5 — workers earning at least 86.67x current minimum wage monthly are PHC-eligible. With $14 minimum: $1,213.38/month. With $16 minimum (Jan 2026): $1,386.72/month. With $18 minimum (Jan 2028): $1,560.06/month. Threshold scales with minimum wage. Multi-state operators must track scaling.
What those rules do as a Hawaii shift is created.
Teambridge's engine continuously evaluates employee eligibility for the Hawaii Prepaid Health Care Act based on their earnings. This includes real-time adjustments as the state minimum wage changes, ensuring compliance without manual intervention.
Dynamic Eligibility Check
Before any shift is confirmed, Teambridge calculates the employee's projected monthly earnings against the current 86.67x minimum wage threshold. If an employee's earnings cross this threshold, they are flagged for PHC eligibility.
Automatic Enrollment Triggers
Once an employee is determined eligible, Teambridge automatically triggers the necessary enrollment processes for employer-provided health insurance, notifying the employer and initiating the 4-week waiting period as per HRS 393-13.
Minimum Wage Scaling
Teambridge's system is pre-programmed with Hawaii's scheduled minimum wage increases. When the minimum wage shifts (e.g., to $16.00 in Jan 2026), the PHC eligibility threshold automatically updates, ensuring continuous compliance without manual recalibration.
Compliance, on autopilot.
See how Teambridge can manage Hawaii's complex wage and hour rules for your business.
Hawaii Prepaid Health Care Act (PHCA) eligibility is tied to a scaling minimum wage multiplier.
The Hawaii Prepaid Health Care Act (HRS Chapter 393) requires most employers to provide health insurance to their employees. A critical component of eligibility for this mandatory coverage is an employee's gross monthly earnings relative to the state's minimum wage.
Hawaii Revised Statutes § 393-5 (Eligibility for health care benefits)
An employee shall be eligible for health care benefits if the employee is employed for at least twenty hours per week and earns a monthly wage equal to or in excess of eighty-six and two-thirds times the applicable hourly minimum wage.
Understanding the 86.67x Multiplier
Hawaii is unique as the only state with mandatory employer-provided health insurance, a system in place since 1974. The PHCA defines eligibility not by a fixed dollar amount, but by a dynamic calculation: 86.67 times the current hourly minimum wage. This means that as Hawaii's minimum wage increases, the monthly earnings threshold for PHC eligibility also rises proportionally. For employers, this necessitates continuous monitoring and adjustment of eligibility determinations.
For example, with the state minimum wage at $14.00 (prior to 2026), the threshold was $1,213.38/month. Effective January 1, 2026, with the minimum wage increasing to $16.00, the eligibility threshold will become $1,386.72/month. Further, in January 2028, when the minimum wage reaches $18.00, the threshold will be $1,560.06/month. Employers must ensure their payroll and HR systems are equipped to track these changes and apply them accurately to avoid non-compliance.
Employer Obligations and Penalties
Employers with eligible employees under the PHCA must provide a health benefits plan that meets specific state requirements. Failure to provide required health care coverage can result in significant penalties, including fines of up to $250 per employee for each violation, and additional penalties for each month of non-compliance. The PHCA does allow for a waiting period of up to four weeks for new employees before coverage must commence, provided the employee was not previously covered by a PHCA-compliant plan within the prior six months.
How Teambridge keeps your Hawaii PHC compliance seamless.
Teambridge integrates Hawaii's unique PHCA eligibility rules directly into your operational workflow, eliminating the need for manual tracking and recalculation as minimum wages change.
Automatic Minimum Wage Tracking
Our system ingests Hawaii's scheduled minimum wage increases directly, updating the 86.67x monthly eligibility threshold the moment it takes effect. No manual adjustments needed on your end.
Dynamic Employee Assessment
Teambridge continuously monitors employee gross earnings against the current PHC threshold. When an employee's projected monthly income crosses the 86.67x minimum wage mark, they are automatically flagged for eligibility.
Streamlined PHCA Onboarding
Upon eligibility, Teambridge triggers a guided workflow to ensure timely enrollment in a compliant health plan, including managing the allowable waiting period and documenting compliance steps.
Comprehensive Compliance Records
All eligibility determinations, enrollment actions, and corresponding dates are automatically logged and maintained, providing an immutable audit trail for PHCA compliance.
People also ask.
What is the Hawaii Prepaid Health Care Act (PHCA)?
The Hawaii Prepaid Health Care Act (HRS Chapter 393) is a unique state law requiring most employers in Hawaii to provide a comprehensive health benefits plan to their eligible employees. It has been in effect since 1974 and is the only state-mandated employer health insurance program in the U.S.
How is the PHCA eligibility threshold calculated?
An employee is eligible for PHCA benefits if they are employed for at least 20 hours per week and earn a monthly gross wage equal to or exceeding 86.67 times the applicable state hourly minimum wage. This threshold is dynamic and changes whenever the minimum wage changes.
What is the current PHC eligibility threshold in Hawaii?
As of January 1, 2026, with the minimum wage at $16.00 per hour, the monthly PHC eligibility threshold is $16.00 x 86.67 = $1,386.72. This will increase again in January 2028 when the minimum wage reaches $18.00.
Are there any waiting periods for PHCA coverage?
Yes, employers may impose a waiting period of up to four consecutive weeks for new employees before health care coverage must commence. This waiting period applies if the employee was not covered by a PHCA-compliant health plan within the six months immediately preceding the start of employment.
What are the penalties for non-compliance with the PHCA?
Employers found in violation of the PHCA can face significant penalties, including fines of up to $250 per employee for each violation. Additional penalties may be assessed for each month of non-compliance, and employers may be ordered to provide retroactive coverage or reimburse employees for medical expenses.
Does the PHCA apply to all employees?
The PHCA applies to most employees who meet the eligibility criteria (20+ hours/week and earnings above the 86.67x minimum wage threshold). There are limited exceptions, such as for certain temporary employees or those covered by federal health plans, but generally, it is a broad mandate.