HAR §12-12-41. Withholding by employers

(a) An employer electing to withhold from covered employees may withhold the proportionate cost of the premium each pay period beginning in the month the employees' coverage becomes effective. In no event shall the employer withhold premiums less often than once monthly. An employer shall not withhold more than 1.5 percent of such employee's regular wages or one-half the cost of premium, whichever is less, during each calendar month. (b) Withholdings by an employer shall be promptly paid to the health care contractor in accordance with the billing requirements of the contractor. (c) Any employer fails to transmit payments to the health care contractor in accordance with the billing requirements of the contractor shall be penalized as provided under section 393-33, HRS. (d) In the event an employer withholds but fails to obtain coverage from a health care contractor, the employer shall: (1) Be liable for all health care expenses incurred by the employee. (2) Refund the withheld premium to all employees. (3) Be subject to penalties prescribed by section 393-33, HRS. [Eff: 5/7/81] (Auth: HRS §393-32) (Imp: HRS §§393-13, 393-15, 393-24)