Bill advances modernization of the Hawaiʻi’s unemployment insurance system

The Hawaiʻi State Legislature has passed House Bill 477, advancing efforts to modernize the state’s unemployment insurance (UI) system. The bill aims to streamline interactions for both claimants and employers, while laying the groundwork for long-overdue improvements to the system.

“These changes move our UI system toward greater efficiency and fairness for both employers and claimants,” said Department of Labor and Industrial Relations Director Jade T. Butay. “The bill does not eliminate the work registration requirement, nor does it change how the department determines eligibility for individuals involved in labor disputes.”

House Bill 477 includes updates to the definition of “registered for work,” authorizes electronic notifications of claim determinations, and allows for the use of electronic communications and document transmission in the appeals process. It also permits claimants to update their tax withholding status and includes other housekeeping provisions aimed at improving system functionality.

“HB477 supports a more efficient and user-friendly experience for all users of the UI system,” said UI Administrator Anne Perreira-Eustaquio. “While the bill does not change existing laws related to labor disputes, it codifies that individuals engaged in such disputes remain attached to their employers.”

The department expects these changes to simplify processes, reduce delays and improve the overall efficiency and fairness of the UI program. The updates also support DLIR’s broader efforts to enhance the existing portal and develop a modern platform to replace the legacy mainframe system.