In a significant legal development, a former employee has taken legal action against his previous employer, accusing them of labor law violations. On March 21, 2025, Jose Arcos filed a complaint in the United States District Court for the Northern District of Illinois against Paragon Electric Corp., alleging violations of the Fair Labor Standards Act (FLSA), the Illinois Minimum Wage Law (IMWL), and the Illinois Employee Classification Act (IECA).
The lawsuit centers around allegations that Paragon Electric Corp., an electrical construction company based in Addison, Illinois, failed to properly compensate Arcos for overtime work. According to the complaint, Arcos was employed by Paragon to perform construction work, including installing electrical systems. Despite working over 40 hours per week on several occasions, he claims he was not paid at the legally required rate of one and a half times his regular pay for overtime hours. "Plaintiff worked in excess of 40 hours per week but was not paid overtime wages," states the complaint.
Arcos also alleges that he was misclassified as an independent contractor rather than an employee. This misclassification purportedly allowed Paragon to avoid paying payroll taxes and other benefits typically afforded to employees. The complaint asserts that Paragon controlled all aspects of Arcos's work, including his schedule and the materials used, which aligns with characteristics of an employer-employee relationship rather than that of an independent contractor.
The plaintiff is seeking several forms of relief from the court. He requests compensation for unpaid overtime wages at one and a half times his hourly rate for all hours worked beyond 40 per week. Additionally, Arcos seeks liquidated damages equal to the amount of unpaid overtime compensation and punitive damages under state law provisions. The complaint also demands statutory damages for each violation of the IECA and reasonable attorney fees.
Representing Jose Arcos is Carlos G. Becerra from Becerra Law Group, LLC. The case has been assigned Case ID: 1:25-cv-03048 and will be heard in front of judges from the Northern District of Illinois.