No, there is no recourse and it is not illegal: the law does not criminalize losing paperwork, and there is no compensation simply for its loss. It is true that IF the loss was due to negligence, or unreasonable carelessness, on the part of the employer, and IF the loss provably causes some direct loss or cost to you, then in might case, you may be able to get compensation for that loss, in an amount equal or equivalent to the loss's monetary value, but that is as far as any liability would go.