More than 500 former US employees have filed a class action lawsuit against Guzman y Gomez after the Australian fast-casual chain shut all eight of its Chicago-area restaurants on May 21, 2026, with no advance warning. The suit, filed three days later in the United States District Court for the Northern District of Illinois, alleges the company violated the federal Worker Adjustment and Retraining Notification Act and the Illinois WARN Act, both of which require 60 days of written notice before a mass layoff.1Evanston Roundtable. No Notice, No Warning: Former Guzman y Gomez Employees Allege Labor Law Violation
How the Closures Happened
On May 21, 2026, Guzman y Gomez told its US workforce through an internal messaging platform that all eight Chicago-area restaurants would close immediately. By May 22, every location had stopped operating.2Evanston Roundtable. Guzman y Gomez Closes US Locations The affected sites were in Naperville, Schaumburg, Evanston, Crystal Lake, Deerfield, Buffalo Grove, Des Plaines, and Chicago’s Bucktown neighborhood.3Nation’s Restaurant News. Guzman y Gomez Has Exited the US Market
The chain was still posting on social media the day the closures took effect.3Nation’s Restaurant News. Guzman y Gomez Has Exited the US Market One of the lead plaintiffs said the Evanston restaurant alone employed about 55 people.2Evanston Roundtable. Guzman y Gomez Closes US Locations
What the Class Action Alleges
Chicago firm Haseeb Legal filed the suit on May 24, 2026, with two former shift leaders as lead plaintiffs. The firm estimates the class at more than 500 workers.4The Guardian. GYG Class Action Workers Closed Chicago Stores The core claim is that Guzman y Gomez conducted a mass layoff without the 60 days of written notice required by both federal and Illinois law. In a public statement, the firm said: “You deserved sixty days. You got zero.”5Latin Times. More Than 500 Workers File Class Action After Mexican-Themed Fast Food Chain Suddenly Exits US Market
The complaint also argues that the US entity and its Australian parent should be treated as a “single integrated enterprise.”4The Guardian. GYG Class Action Workers Closed Chicago Stores If accepted, that theory would reach the parent company’s assets rather than leaving workers to collect from a shuttered US subsidiary.
What the Workers Are Seeking
The plaintiffs are asking for up to 60 days of back pay and benefits for each class member, the standard remedy under the WARN Act.5Latin Times. More Than 500 Workers File Class Action After Mexican-Themed Fast Food Chain Suddenly Exits US Market They also seek the value of lost benefits, including medical expenses that would have been covered under the company’s plan, and civil penalties of up to $500 per day for each day the company failed to notify local government officials.1Evanston Roundtable. No Notice, No Warning: Former Guzman y Gomez Employees Allege Labor Law Violation The suit requests a jury trial.4The Guardian. GYG Class Action Workers Closed Chicago Stores
How the WARN Acts Apply
The federal WARN Act covers private employers with 100 or more full-time employees and requires 60 days of written notice before a mass layoff or plant closure. A mass layoff is triggered when at least 500 workers lose their jobs, or when at least 50 workers representing a third or more of a site’s workforce are let go. Employers that skip notice can be liable for back pay and benefits for each day of the violation, up to 60 days, plus civil penalties of up to $500 per day for failing to notify local government.6Cornell Law Institute. Mass Layoff
Illinois goes further. The state’s WARN Act applies to employers with as few as 75 full-time workers and can be triggered by a layoff of just 25 employees if they represent a third or more of the workforce at a single site. The Illinois Department of Labor is also authorized to investigate compliance and examine an employer’s books and records.7Littler Mendelson. Illinois WARN Act Summary Those lower thresholds mean the closures at individual Guzman y Gomez restaurants could independently qualify as violations under state law, not only as a combined event under federal law.
Where the Case Stands
Guzman y Gomez has acknowledged the lawsuit but has not laid out a detailed defense. A spokesperson said the company is “aware of the legal action filed in the United States” and is “confident we have met all of our legal obligations to our US employees.”8NewsNation. Guzman y Gomez Closes US Restaurants In earlier public communications about the exit, the company pledged to support “every member of the US team through the transition with the respect and integrity they deserve,” without specifying severance or final paycheck terms.9Verdict Foodservice. Restaurant Brand Guzman y Gomez to Exit US Market
As of late May 2026, no settlement has been reached and no court rulings have been issued.10Australian Financial Review. Guzman y Gomez Faces US Class Action Over Store Closures Former employees of any of the eight closed Chicago-area locations fall within the class the complaint describes.