What's Happening?
Lou Milardo, the owner of Lou Builders, LLC and J&L Milardo, LLC in Haddam, Connecticut, has been arrested and charged with failing to provide the legally required workers’ compensation insurance for his
employees. The arrest was made by inspectors from the workers’ compensation fraud unit of the Chief State’s Attorney’s office. According to the arrest warrant affidavit, the National Council on Compensation Insurance database indicated that Lou Milardo Builders never carried a workers’ compensation insurance policy. J&L Milardo had previously maintained such a policy, which was canceled due to non-payment. This cancellation occurred despite the company’s knowledge of the legal requirement to maintain coverage. In August 2021, an employee of Lou Milardo Builders was involved in a serious work-related accident without any workers’ compensation insurance in place, leading the Second Injury Fund to cover $85,489.22 in medical and indemnity payments.
Why It's Important?
This case highlights the critical importance of compliance with workers’ compensation insurance laws, which are designed to protect employees in the event of workplace injuries. The failure to maintain such insurance not only exposes employers to legal action but also places a financial burden on state resources like the Second Injury Fund, which is funded through assessments on workers’ compensation policies. This incident underscores the potential risks and liabilities that businesses face when they neglect legal obligations, potentially affecting their financial stability and reputation. It also serves as a reminder to other businesses about the importance of adhering to employment laws to avoid similar legal and financial repercussions.
What's Next?
Lou Milardo has been released on a $10,000 non-surety bond and is scheduled to appear in court on January 20, 2026. The legal proceedings will determine the outcome of the charges against him. This case may prompt increased scrutiny and enforcement actions by state authorities to ensure compliance with workers’ compensation laws. Businesses in Connecticut and beyond may need to reassess their insurance policies and compliance practices to avoid similar legal challenges.
