Maui employees too traumatized to work following the deadliest U.S. wildfire in over a century could be eligible for federal Disaster Unemployment Assistance with the help of the state Department of Labor and Industrial Relations, DLIR told the Honolulu Star-Advertiser on Thursday.

The issue of requiring traumatized employees to return to work arose after Gov. Josh Green and Mayor Richard Bissen agreed to reopen West Maui to tourism on Sunday — the two-month commemoration of the Aug. 8 Lahaina wildfire that killed 98 people — leading to criticism that some evacuees were too emotionally fragile to serve tourists.

In general, Hawaii employees who decline offers of work are declared ineligible for state unemployment insurance, which is funded by employers.

But in response to a Star-Advertiser report this week, DLIR officials said they reached out to the U.S. Department of Labor and received support to encourage traumatized Maui employees to apply for federal disaster unemployment aid instead of the usual Hawaii unemployment insurance program.

Although Hawaii labor officials will help Maui workers with their federal disaster claims, DLIR emphasized that each Maui worker’s claim for unemployment compensation would be evaluated on a case-by-case basis.

DLIR’s announcement to the Star-Advertiser came on the same day it announced that Maui’s initial unemployment claims this week soared over 400% compared to the same time last year, driving unemployment in Hawaii to an overall increase even though every other county saw declines in unemployment claims.

The numbers released by DLIR on Thursday further underscore the Valley Isle’s economic slowdown during Hawaii’s traditionally slow “shoulder season” ahead of the winter holidays.

There were 719 initial unemployment claims this week from Maui workers compared to just 143 at the same time last year — resulting in a 402.8% increase versus the same week in 2022, according to DLIR.

In total, Maui’s initial unemployment claims meant that Hawaii saw an overall 44.4% increase in initial unemployment claims — 1,562 this week compared to 1,082 at the same point last year, according to DLIR.

All other counties saw declines in their initial unemployment claims this week, led by Oahu’s 12.4% drop when 651 workers filed initial unemployment claims compared to 743 a year ago, according to DLIR.

Kauai trailed Oahu with a 7.8% decline in claims — 47 this week compared with 51; followed by Hawaii County’s decline of 2.7% — 109 this week versus 112 in the same week in 2022.

Overall this year, Maui has seen 20,446 workers filing unemployment claims compared with 29,228 Oahu employees.

Also on Thursday, Bissen said he will ask the Maui County Council to establish three water billing categories to help water customers in Lahaina and Upper Kula.

“By establishing these categories, we can help to alleviate some of the hardship residents in disaster-affected areas are experiencing,” Bissen said in a statement. “It’s necessary to take into account the circumstances our residents are facing from the devastating fires.”

Bissen’s proposals would:

>> Temporarily cancel water service for customers whose homes were destroyed, but allow for temporary irrigation rates for lawns, crops and gardens.

>> Consider claims from water customers whose water was used to assist in extinguishing the fires. Claim forms can be obtained through the county clerk’s website.

>> Charge water customers only the base water service who are under the county’s “Unsafe Water Advisory” areas.

The Federal Emergency Management Agency said Thursday that limited reentry of residents to some parts of Lahaina followed “intensive efforts by the U.S. Environmental Protection Agency, working in partnership with cultural monitors from Lahaina, to clean the worst of the toxic materials left by the flames. And the reentry process comes ahead of the U.S. Army Corps of Engineers’ contribution to those efforts by removing fire-damaged debris from private property.”

FEMA Region 9 Regional Administrator Robert J. Fenton, in a statement, called it “a difficult and slow-moving process but moving with care is necessary to move forward with the recovery. We want to be sensitive to and respectful of those who lost so much.”

The first area was opened Sept. 25 to Lahaina residents who could document that they lived in the area along Kaniau Road. They were driven in on golf carts and provided hooded, white disposable jumpsuits, protective gloves and respirators because of toxic air and soot.

Those who declined personal protective equipment were allowed to direct volunteers from Southern Baptist Disaster Relief or Samaritan’s Purse to sift through the ashes for them, according to FEMA.

As of Wednesday, FEMA said that it and the U.S. Small Business Administration have approved more than $195.9 million in federal assistance for Maui survivors and businesses — including $165.1 million in long-term, low-interest SBA disaster loans for homeowners, renters and businesses, and more than $30.8 million in FEMA assistance for more than 6,300 households to rebuild or repair homes.

The aid includes more than $14.6 million for housing assistance and $16.1 million in other disaster-related expenses such as medical bills, critical needs, personal property and repair or replacement of vehicles, FEMA said.

FEMA said there is “solid progress being made toward a temporary replacement for the King Kamehameha III Elementary School, which was destroyed in the fires. FEMA has tasked the Corps of Engineers to design and oversee the installation of a temporary school campus in coordination with the Hawai‘i Department of Education. FEMA and its federal partners will continue to support the state and county as they work toward a permanent solution for schoolchildren of West Maui.”

The American Red Cross also has provided $11.3 million in financial assistance to help survivors with meals, medications, transportation, replacement of medical equipment, housing and clothing, according to FEMA.