Workers at the Australian fast-food chain Guzman y Gomez have initiated a class-action lawsuit following the sudden closure of several Chicago stores, alleging widespread violations of employment laws. The legal action, filed in Cook County Circuit Court, claims that the company failed to provide adequate notice of the closures as required by the Worker Adjustment and Retraining Notification (WARN) Act.
Allegations of Unlawful Employment Practices
The lawsuit, brought on behalf of former employees from three Chicago locations, asserts that Guzman y Gomez did not comply with federal and state regulations regarding mass layoffs. Specifically, the plaintiffs argue that the company shut down the restaurants without giving the mandated 60-day notice, leaving workers without time to secure new employment or access transitional support.
WARN Act Violations
The Worker Adjustment and Retraining Notification Act requires employers with 100 or more workers to provide advance notice of plant closings and mass layoffs. The plaintiffs claim that Guzman y Gomez, which operates over 150 locations globally, falls under this jurisdiction. The abrupt closures in Chicago affected dozens of employees, many of whom were not informed until the day of the shutdown.
Additional Claims
Beyond WARN Act violations, the lawsuit includes allegations of unpaid wages, failure to provide final paychecks in a timely manner, and denial of accrued paid time off. The plaintiffs seek back pay, compensatory damages, and legal fees. They also request that the court certify the case as a class action to represent all affected workers.
Company Response
Guzman y Gomez has not yet filed a formal response in court. However, a company spokesperson stated that they are reviewing the lawsuit and declined to comment further. The chain, known for its Mexican-inspired cuisine, has been expanding rapidly in the United States, but the Chicago closures marked a significant setback.
Impact on Workers
Former employees described the closures as sudden and devastating. Maria Lopez, a former shift manager at the River North location, said, "We showed up for our shifts and found the doors locked. No one from management called or emailed us. We lost our livelihoods without any warning." The lawsuit aims to hold the company accountable for what workers describe as a callous disregard for their rights.
Legal Precedent
Labor law experts note that WARN Act cases are complex, but successful claims can result in significant settlements. If the court rules in favor of the workers, Guzman y Gomez could face substantial financial penalties. The case also highlights the growing scrutiny of employment practices in the fast-food industry.
The lawsuit is one of several recent legal actions against restaurant chains for alleged labor violations. As the gig economy and service sector evolve, workers are increasingly turning to collective legal action to enforce their rights.
