Danbury Business Owner Arrested for Failing to Provide Workers’ Compensation Insurance
Danbury business owner Rahamat Hydar, 55, learned the hard way what happens when you don’t provide your employees with the legally required workers’ compensation insurance. That lesson came in the form of an arrest—and a very public one at that.
That arrest followed a workplace accident at Meagan’s Auto, Truck & Equipment Specialist LLC (Meagan’s Auto) in November 2023. An employee was severely injured while helping a customer with a tow truck. And when the injured worker went to seek medical help and lost wages, the company’s lack of coverage was exposed.
That’s when Connecticut’s Workers’ Compensation Fraud Control Unit stepped in. They found that Meagan’s Auto had a history of canceling and reinstating its insurance policies due to nonpayment of premiums, noncompliance with policy conditions, and incomplete audits.
Connecticut law is pretty clear: businesses either need to carry workers’ compensation insurance or be able to cover workplace injuries financially. If they don’t comply, the consequences can be steep: fines, criminal charges, and liability for injured workers’ medical expenses and wages.
On March 25, 2025, Hydar was arrested and charged with failing to provide that insurance. He posted a $10,000 non-surety bond and is due in Danbury Superior Court on April 2, 2025.
This case is a stark reminder of the risks business owners take when they neglect workers’ compensation coverage. In high-risk industries like auto repair and towing services, neglect can be devastating. Employers who don’t comply with the law can be forced to cover injury-related costs out of pocket. That can lead to lawsuits and potentially even business closure. Noncompliance also damages a company’s reputation, making it harder to retain employees and customers.
That’s exactly what happened in this case. And Hydar’s arrest should be a wake-up call to business owners everywhere. By prioritizing compliance, employers can protect their workers—and their businesses—from costly legal consequences.
