Guzman y Gomez Faces Class Action Over 8 US Closures and 60 Days of Alleged Unpaid Wages
Updated
Updated · The Guardian · May 25
Guzman y Gomez Faces Class Action Over 8 US Closures and 60 Days of Alleged Unpaid Wages
2 articles · Updated · The Guardian · May 25
More than 500 former Guzman y Gomez workers sued in federal court in Illinois, alleging the chain shut all eight Chicago-area stores on May 21 without the 60 days’ notice required for a mass layoff.
The proposed class action seeks up to 60 days of pay and benefits for affected staff after an internal message told employees the company was exiting the US market and closing all restaurants immediately.
Two named plaintiffs — baristas promoted to shift leaders earning $21 and $23 an hour — say they received neither proper notice nor compensation, and the suit asks for a jury trial.
The filing also argues GyG’s US unit and Australian parent operated as a single integrated employer, potentially widening liability beyond the local subsidiary.
The lawsuit follows GyG’s retreat from a lossmaking US expansion into a crowded Mexican fast-food market, which analysts have called a graveyard for Australian chains.
Can a Chicago lawsuit force an Australian parent company to pay for abrupt US layoffs?
GYG's stock surged after its US exit. Did it trade its workers' legal rights for a quick profit?
What critical mistake led a global food giant to abruptly abandon its entire US market?