Guzman y Gomez faces class action from US workers over closed stores
Summary
Workers at Guzman y Gomez’s US stores have filed a class action lawsuit after the company suddenly closed all its Chicago locations. They claim they were not given proper notice or pay as required by law when the stores shut down.Key Facts
- Guzman y Gomez (GyG) closed all its Chicago stores immediately in May.
- The US workers say they were informed of the closure only through an internal message on the day the stores closed.
- The lawsuit claims federal and state laws require 60 days’ advance written notice before a mass layoff.
- Over 500 US employees are estimated to be affected by the closures.
- The workers seek pay and benefits for up to 60 days and want a trial by jury.
- Guzman y Gomez is a fast-growing Australian fast food chain with top rankings in Australia.
- The company stopped its US expansion plans due to losses in a competitive market with established players like Chipotle.
- The lawsuit argues that Guzman y Gomez’s Australian and US operations acted as one employer, increasing their legal responsibility.
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