MHIC NASCLA Contractors Practice Exam

Non-compliance regarding Workers Compensation Insurance occurs when an employer does not register for this specific type of insurance. Workers Compensation Insurance is mandated in most states to protect employees who may be injured on the job, providing them with benefits for medical expenses and lost wages due to work-related injuries. Therefore, failing to register for this coverage directly violates legal requirements.

Providing health coverage to employees does not fall under the category of Workers Compensation, as health insurance serves a different purpose. Moreover, not paying unemployment taxes is a separate legal obligation that pertains to job loss benefits rather than workplace injuries.

In summary, the act of not registering for Workers Compensation Insurance clearly represents a failure to comply with the regulations aimed at safeguarding employees in the event of workplace accidents, making it the correct choice in identifying non-compliance in this context.