Opinion ID: 6494431
Heading Depth: 2
Heading Rank: 1

Heading: Hawaii’s Workers’ Compensation Statutory Scheme

Text: HRS § 386-3(a) provides, in relevant part: If an employee suffers personal injury either by accident arising out of and in the course of the employment or by disease proximately caused by or resulting from the nature of the employment, the employee’s employer or the special compensation fund shall pay compensation to the employee or the employee’s dependents as provided in this chapter. Thus, both mental and physical injuries suffered “in the course of employment” are compensable. In 1998, the legislature clarified that: A claim for mental stress resulting solely from disciplinary action taken in good faith by the employer shall not be allowed; provided that if a collective bargaining agreement or other employment agreement specifies a different standard than good faith for disciplinary actions, the standards set in the collective bargaining agreement or other employment agreement shall be applied in lieu of the good faith standard. For purposes of this subsection, the standards set in the collective bargaining agreement or other employment agreement shall be applied in any proceeding before the department, the appellate board, and the appellate courts. HRS § 386-3(e) (emphasis added). In 2005, the legislature defined “disciplinary aetion.” See 2005 Haw. Sess. Laws Act 11 (revising HRS § 386-1). According to HRS § 386-1, “ ‘[disciplinary action’ means personnel action by an employer in the form of punishment against an employee for infraction of employer or contract rules, in the form of a reprimand, suspension, or discharge.” In short, HRS § 386-3(c) bars recovery for workers’ compensation claims for mental stress resulting from certain employer actions. At issue in this case is whether LIR-AB incorrectly determined that HRS § 386-3(c) barred Gao’s claim. Accordingly, we address whether the NTIP: (1) was “disciplinary aetion,” i.e., constituted punishment in the form of a reprimand, suspension, or discharge; and (2) was taken in good faith (or in accordance with applicable collective bargaining agreement standards).