A Haddam business owner faces criminal charges for allegedly failing to provide required workers’ compensation insurance coverage after an employee was seriously injured in a 2021 workplace accident.
Lou Milardo, 58, owner of Lou Milardo Builders LLC and J&L Milardo LLC, was arrested Dec. 3 by inspectors from the Workers’ Compensation Fraud Control Unit in the Office of the Chief State’s Attorney. He is charged with two counts of noncompliance with insurance requirements, state authorities said.
According to the Office of the Chief State’s Attorney, Lou Milardo Builders never carried a workers’ compensation policy.
J&L Milardo, which operated as Rivers Edge Tile & Carpet, previously maintained coverage but the policy was canceled by the insurer for nonpayment of premiums — showing that Milardo was aware of the requirement, according to authorities.
In August 2021, an employee of Lou Milardo Builders was involved in a serious accident while operating heavy machinery. Since the business did not have workers’ compensation insurance, the state’s Second Injury Fund paid $85,489 in medical and indemnity benefits for the injured worker, state authorities said.
The Second Injury Fund provides benefits to employees who were injured during the course of their employment if their employer failed to cover their wages and medical expenses. It is funded through assessments on workers’ compensation policies.
Connecticut law requires businesses to either demonstrate financial solvency to the Workers’ Compensation Commission or carry insurance to cover the full liability for workplace injuries.
Milardo was released on $10,000 non-surety bond and is scheduled to appear in Middletown Superior Court on Jan. 20, 2026, state authorities said.
The case is being prosecuted by the Workers’ Compensation Fraud Control Unit with assistance from the Rocky Hill Police Department.
