Final answer:
Penalties for workers' compensation non-compliance are primarily assessed for an employer's failure to provide workers' compensation coverage, as mandated by law.
Step-by-step explanation:
Workers' compensation non-compliance penalties are assessed for failure to provide workers' compensation coverage. Employers are mandated by law to contribute a portion of their payroll into workman's compensation insurance funds. These funds are designed to offer benefits to employees who incur injuries or illnesses on the job. If an employer does not comply with this requirement, penalties can be imposed, which ensures that workers' rights are protected and that they receive the necessary support in case of workplace accidents or health issues. The Occupational Safety and Health Administration (OSHA) also plays a role in enforcing workplace safety, which includes penalties for various safety violations, but these are distinct from workers' compensation requirements.