Resource Toolkit for Maui Employers

We encourage affected businesses to let employees know they can begin filing for unemployment benefits with the State of Hawaii. The best way to file a claim is online (https://labor.hawaii.gov/ui/). 

However, if internet access is an issue, claims can also be filed by phone. As of August 12th, the State has extended hours, seven days a week, from 7 am to 6 pm. Employees can call any of the four numbers listed here: (833) 901-2272, (808) 762-5751, (833) 901-2275, or (808) 762-5752. 

If neither of these are options, claims can be filed in-person at a State unemployment office. Employees can visit the Maui Unemployment Insurance Office, which is located in Wailuku at the State Building at 54 South High Street, Room 201. They are accepting walk-ins, but we are advised that wait times may be lengthy. To file a claim in person, identification, such as a driver’s license, passport, or State ID card, is required. Photocopies will be accepted. 

Overview:

Unemployment Insurance (UI) is a joint program of the federal and State governments. In Hawaii, it provides temporary cash benefits to workers who become fully unemployed or separated from their employer (e.g., layoffs) or partially/temporarily unemployed but attached to their employer (e.g., reduced hours, zero-hours furlough, etc.) through no fault of their own, and who meet the eligibility requirements as determined by the State. 

Benefit Amount & Duration: 

The State will calculate employees’ weekly benefit amount based on their wages. Full unemployment, usually the outcome of a layoff, pays up to a maximum of $763 per week, and employees can receive benefits for up to 26 weeks in the one year called a “benefit year.” Partial unemployment, usually the outcome of a furlough or working reduced or even zero hours, also pays a maximum of $763 per week. However, suppose an employee's earnings during the week equal or exceed their weekly unemployment benefit amount. In that case, they will not be entitled to unemployment benefits for that week.

Employee Eligibility for Benefits: 

The State of Hawaii, Unemployment Insurance Division, will determine employees’ eligibility based on the following criteria:

• Prior wages: An employee must have earned sufficient wages in the 12 to 18 months prior to filing a claim.
• Separation reason: If unemployment is due to the Maui wildfires, an individual will qualify for UI benefits. Generally speaking, if a person becomes unemployed through no fault of their own, they are eligible for benefits.
• Ability and availability to work: The job search requirement to maintain eligibility is currently being waived by the State for employees impacted by the wildfires. 

How Employees Can Apply:

Employees can file for unemployment benefits in the following ways:

• Online: Applying online is the preferred option (https://labor.hawaii.gov/ui/) If employees need assistance, they can read the instructions or watch the video about how to apply. 

• By phone: If internet access is a challenge, employees can call any of the four numbers listed here: (833) 901-2272, (808) 762-5751, (833) 901-2275 or (808) 762-5752. As of August 12th, the State has extended hours, seven days a week, from 7 am to 6 pm.

• In-person: If filing online or by phone is not an option, employees can visit the Maui Unemployment Insurance Office (Wailuku at the State Building at 54 South High Street, Room 201). Walk-ins are accepted, but wait times will likely be high. To file a claim in person, identification such as a driver’s license, passport, or State ID card, is required. Photocopies will be accepted. 

To apply, employees will need:

• Correct employer name
• Required Identification
  • If applying online or over the phone – Social Security Number is required
  • If applying in-person – A driver’s license, passport, or State ID is required  (photocopies accepted)

• Contact info
• Valid email
• Dates of employment over the past 18 months
• Past employer’s names, addresses, and phone numbers
• Reason for separation
• Direct deposit info (account type, account, and routing number). In the state of Hawaii, having a direct deposit account is required to get paid

Notes about applying:

• • Employers should not try to file on behalf of an employee. To process the claim, the State would still need to contact the employee to validate the information submitted, causing significant delays in the employee receiving benefits. 
  • If an employee has filed for unemployment benefits previously and their benefit year is still active, they will be directed to reactivate their current claim rather than filing a new initial claim.
  • If an employee is furloughed but not working any hours, they can report “Temporary layoff – Partial claim” as the “Type of Separation” when they file a claim.
  • Employees working reduced hours can report “Still attached” as the “Type of Separation” when they file a claim.

After Applying:

• • Employees will receive benefits through direct deposit. At the time employees apply for benefits, they will be directed to provide their banking information.
  • Unemployment benefits are taxable, but taxes are not automatically withheld. Employees may request withholding in their application for benefits. 
  • Employees do NOT need to register with HireNet and complete the job search requirement if employees are filing claims due to the wildfires. The state is waiving this requirement only for employees affected by the wildfires. However, the state instructs employees to answer the questions as follows (since answering “no” will hold up their claim)
    • • Did you post an online resume on HireNet Hawaii? YES
      • Did you look for work? YES
      • How many employers did you contact? 3+
      • Are you keeping written records of your job contacts? YES

How Unemployment is Funded:

For most employers, unemployment benefits are paid from funds held by the State that have been collected from the employer via unemployment insurance tax. For self-financed employers (limited to non-profits who have applied to be self-financed), benefits are paid by the employer through reimbursement to the State.

Benefits paid due to the wildfires will not be charged to contributory employers. 

Resources:

• • FAQs for Employees Impacted by Maui Wildfires
  • Instructions for Filing Unemployment Using the Online PDF Form
  • Video Instructions for Filing Unemployment Online
  • Instructions for Filing Claim Certification PDF Form
  • Video Instructions for Filing an Unemployment Claim Certification
  • Extended Call Center Hours

If the Maui wildfires have impacted your business, you may be considering reducing your business expenses. Furloughs and layoffs are two of the most common approaches. 

• A furlough allows employees to retain their jobs during a temporary period, and in most cases, their benefits continue uninterrupted.
• A layoff involves the termination of an employee's employment due to factors affecting the business, such as a lack of work or financial constraints, and in most cases, employees no longer receive benefits.

Understanding the advantages and distinctions between a furlough and a layoff is crucial. This knowledge will empower you to make informed decisions that enable your business to endure challenging times and ensure fairness and respect for your employees.

Pro-tip: If you think your employees can return to work within approximately the next 2 months, furloughing employees (instead of laying them off) may be something to consider. Here is a sample furlough letter you can use. 

A furlough is forced temporary unpaid leave. Furloughs help employers immediately reduce costs while simultaneously providing business continuity and competitiveness for when the market recovers. Because employees do not earn their regular wages during a furlough, they are usually eligible for unemployment benefits and it does provide some assurance of returning to work. Also, benefits are typically continued for furloughed employees.

Furloughs can be implemented in a variety of ways. Employers might furlough all employees or only non-essential staff or make different determinations for each department so long as these decisions are based on business needs and not discriminatory or protected factors. Depending on business needs, the length of the furlough might last one month, one week, or one day every week. Employers can specify an expected timeframe for furlough, although it is okay for this to change depending on business needs.

Pros:

• Employees generally get to keep their benefits.
• Your company reduces short-term costs while also avoiding costly hiring and training processes once the situation stabilizes.
• Employees can collect unemployment benefits. 

Cons:

• Your company continues to pay expenses for employee benefits.
• Employees may find other employment during the furlough period.

Pro-tip: If you think your employees cannot return to work within approximately the next 2 months or are unsure, laying off employees may be the best route. Here is a sample layoff letter you can personalize if WARN rules don’t apply to you. If WARN rules apply to your business, use this layoff template instead. See below to learn more.

A layoff is a termination of employment due to insufficient work or funding. Employees subjected to a layoff bear no responsibility for the situation and are usually eligible for unemployment benefits. However, they normally no longer receive company benefits. 

Pros:

• Your company does not have to continue paying for benefits.
• Employees can begin searching for their next job without the false hope your company will take them back.

Cons:

• Your company must find new employees when ready to rehire. 

Note: In the event of a layoff caused by the Maui wildfires, employers will not be charged for unemployment costs under the Major Disaster proclamation effective 08/08.

If you’re considering layoffs, here are critical HR factors you should be aware of:

Final paychecks: Employers must pay all earned wages at the time of discharge (or no later than the next working day). If you are considering layoffs, please let your Service Team at ProService know so we can prepare final paychecks. 

Health insurance: When an employee is laid off, their job-related benefits, including health insurance, are typically terminated at the end of the month. Generally, if your company employed 20 or more employees during the last year, employees are eligible for continuation of benefits through the Consolidated Omnibus Budget Reconciliation Act (COBRA). COBRA allows eligible employees and their dependents to continue the same group health insurance coverage they had while employed at their own expense. This coverage extension ensures that individuals and their families can maintain essential healthcare benefits during a period of job loss and transition. While COBRA coverage can be more expensive since the employer's contribution is no longer provided, it remains a crucial option, providing a bridge between employer-sponsored health insurance and the next employment opportunity or alternative coverage. If applicable, ProService will send COBRA information directly to employees. If COBRA is not applicable, employees may explore options at HealthCare.gov, a government website providing options for individuals to purchase health insurance on their own.

Notifying employees: The WARN Act (Worker Adjustment and Retraining Notification) helps ensure that employers give advance employee notice in cases of qualified plant closings and mass layoffs. WARN requirements don’t apply if your company employs less than 100 employees or is laying off less than 50 employees, and there is no required notice period prior to laying off employees. However, WARN requirements apply if your company employs at least 100 employees and has one of the following circumstances: 

• You are closing a facility or discontinuing operations permanently or temporarily and adversely affecting at least 50 employees, not counting part-time workers, at a single site of employment.
• You are laying off at least 50 employees (not counting part-time workers), and these layoffs constitute 33% of the total active workforce at a single site of employment.
• You are reducing the work hours for 50 or more employees by 50% or more each month in any 6-month period. 

Note: The WARN Act has exceptions to the normally required 60-day notice period when layoffs occur due to natural disasters or unforeseeable business circumstances. Under this exception, employers should give as much notice as possible, send notices to the employees' last known address, and post notices at the work site, if possible. 

Now Open: Hawaii Disaster Recovery Jobs Portal

Website: disasterrecovery.hirenethawaii.com

Hirenet Hawaii has opened a new web portal that offers a complete set of employment tools for job seekers in Hawaii affected by disaster.

Jobseekers can search for employment opportunities create resumes, and training. Employers can find candidates and post jobs on the site.