HI SB2881

Removes charter schools from the State's self-insured workers' compensation system administered by the Department of Human Resources Development, effective July 1, 2016.

Requires charter schools to independently secure workers' compensation coverage for their employees through one of several options under Hawaii law: commercial insurance, self-insurance, security deposit, direct payment, workers' compensation self-insurance group, or captive insurer.

Eliminates the 0.07 percent fee that charter schools paid to the Department of Human Resources Development from their EDN 600 budget appropriation for workers' compensation claims processing.

Addresses $1,998,800 in workers' compensation claims paid by the Department of Human Resources Development for charter school employees between fiscal years 2010-2015 (averaging $333,133 annually) with no reimbursement to the department.

Removes "workers' compensation" from the list of state employee benefits that charter school employees participate in, while maintaining their participation in retirement, unemployment insurance, temporary disability insurance, and health benefits.