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Bill

GM 1225

Informing the Legislature that on June 24, 2026, the Governor signed the following bill into law: HB1515 HD2 SD1 CD1 (ACT 124).

2026 Regular Session

Allows attending physicians to request functional capacity examinations (FCEs) without prior employer approval, speeding return-to-work decisions.

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Bill Summary · GM 1225

Overview

HB1515 CD1 SD1, signed into law as Act 124 on June 24, 2026, relates to workers’ compensation in Hawaii. The bill aims to streamline and automate the approval process for functional capacity examinations (FCEs) to assess an injured employee’s ability to return to work or need for accommodations or vocational rehabilitation.

Main purpose and intent

  • Ensure timely and accurate determination of an injured worker’s physical abilities and functional restrictions.
  • Reduce delays in obtaining functional capacity examinations by limiting the need for employer approval and denials/awaiting insurer decisions.
  • Improve outcomes for injured workers by expediting assessments that inform return-to-work decisions and vocational rehabilitation.

Key provisions and changes

  • New statutory section: Adds a formal process for functional capacity examinations under Chapter 386.
    • When an injured employee reaches medical stabilization and their work capacity is in question, the attending physician may request an FCE from a qualified health care provider.
    • The attending physician may initiate the FCE without obtaining prior permission from the employer.
    • The qualified health care provider for the FCE must be trained to perform FCEs.
    • The attending physician must provide written notice to the employer at least seven calendar days before the referral, including the provider’s name, address, discipline, and reasons for the FCE.
    • The FCE report must be provided to the attending physician and the employer within 14 calendar days after the examination.
    • The employer shall pay the fees for the FCE.
    • Definitions:
    • Functional capacity examination: tests identifying an injured employee’s physical skills, capabilities, endurance, and work tolerances after stabilization.
    • Functional capacity examination report: recommendations on return-to-work status, with or without restrictions or accommodations.
    • Qualified health care provider: provider who meets Chapter 386 qualifications and is trained to perform FCEs.
  • Expanded scope for “health care provider”:
    • Definition updated to include advanced practice registered nurses (APRN), and to explicitly include occupational therapists and physical therapists for the limited purpose of performing FCEs.
  • Qualifications of providers:
    • Section 386-27 is amended to ensure providers initially licensed in various fields (including medicine, osteopathy, dentistry, chiropractic, naturopathy, optometry, podiatry, psychology) remain qualified to render health care services, with occupational and physical therapists included for FCE purposes.

Who would be affected

  • Injured employees undergoing workers’ compensation claims who may need an FCE to determine return-to-work viability.
  • Attending physicians and other treating clinicians who can request FCEs without employer pre-approval.
  • Employers who would be required to cover FCE fees and receive the FCE reports.
  • Qualified health care providers (including physicians, APRNs, occupational therapists, and physical therapists) who perform FCEs.

Procedural and timeline aspects

  • Effective date: July 1, 2026.
  • Pre-referral notification to the employer: at least seven days before the FCE referral.
  • FCE report delivery: within 14 days after the examination.
  • Fee responsibility: employer pays for the FCE.
  • Administrative change: reduces delays by removing employer permission as a prerequisite for referral in many cases; modifies provider qualifications to support FCE capability.

Practical impact

  • Aims to shorten time to functional assessment post-stabilization.
  • Potentially accelerates decisions on return-to-work, accommodations, or vocational rehabilitation.
  • Shifts some procedural control from employers to treating physicians in requesting FCEs.

Compiled from official sources — confirm details with the bill’s official record.

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