The owner of a Connecticut building company has been charged with failing to provide workers’ compensation insurance coverage for his employees, and one was badly injured.
Lou Milardo, 58, of Haddam, was arrested on Dec. 3 by inspectors from the Workers’ Compensation Fraud Control Unit in the Office of the Chief State’s Attorney and charged with two counts of noncompliance with insurance requirements, according to a release from the Connecticut Division of Criminal Justice.
Milardo is the principal owner of Lou Milardo Builders, LLC and J&L Milardo, LLC, located in Haddam. The arrest warrant affidavit said information from the National Council on Compensation Insurance database allegedly revealed that Lou Milardo Builders, LLC, allegedly never carried a workers’ compensation insurance policy.
According to the warrant affidavit, J&L Milardo, LLC previously maintained a workers’ compensation insurance policy. “Additionally, J&L Milardo was doing business as Rivers Edge Tile & Carpet and previously carried a policy, demonstrating knowledge of the requirement, until it was canceled by the insurer for non-payment of the premium,” the warrant affidavit said.
The warrant affidavit said, in August 2021, an employee of Lou Milardo Builders was involved in “a serious work-related accident while operating heavy machinery on a worksite.” At the time, there allegedly was no workers’ compensation insurance policy in effect to cover the employee.
“As a result, the total amount of medical and indemnity payments for the injured employee that was paid by the state through the Second Injury Fund is $85,489.22,” according to the warrant affidavit.
The DCJ noted that “Connecticut state law requires businesses to demonstrate to the Workers’ Compensation Commission their solvency and financial ability to compensate injured employees or beneficiaries. Otherwise, the business must carry Workers’ Compensation insurance to cover the full liability.
“The Second Injury Fund provides benefits to employees who were injured during the course of their employment where the employer failed to cover the wage replacement and medical expenses. It is funded through assessments in the workers’ compensation policy.”
Milardo has been released on $10,000 non-surety bond and is scheduled to appear in Middletown Superior Court on Jan. 20, 2026.
The case is being prosecuted by the Workers’ Compensation Fraud Control Unit in the Office of the Chief State’s Attorney. “The Unit is grateful for the assistance it received from the Rocky Hill Police Department,” the DCJ said in the release.
