Guzman y Gomez, a Mexican-themed fast-food chain based in Australia, is facing legal action in the United States after abruptly closing all its Chicago locations. The lawsuit, filed in an Illinois court, claims that the company failed to provide adequate notice to its employees before shutting down operations in the area.

Allegations of Sudden Closure

The lawsuit alleges that Guzman y Gomez permanently closed its six Chicagoland restaurants last Thursday, leaving about 500 employees without jobs. The workers were reportedly informed of the closures via an internal messaging platform late in the evening, with no prior warning.

The plaintiffs are seeking compensation under the federal and state Worker Adjustment and Retraining Notification Acts, which require employers to provide 60 days’ notice before mass layoffs. They are also pursuing a maximum civil penalty under the act.

Company’s Response

In response to the lawsuit, a spokesperson for Guzman y Gomez stated, “GYG is aware of legal action filed in the United States, and we are confident we have met all of our legal obligations to our U.S. employees. We are not in a position to provide further comment on this matter.”

The company’s decision to exit the U.S. market was attributed to poor sales performance. Despite the legal challenges, Guzman y Gomez’s shares saw a temporary rise of over 10% following the announcement of its U.S. exit, before stabilizing at A$19.805.

Impact on Employees

The sudden closure has left many employees in a difficult position, as they were not given the opportunity to prepare for the loss of their jobs. The lawsuit highlights the importance of adhering to labor laws designed to protect workers from unexpected job losses.

As the legal proceedings unfold, the case will likely draw attention to the responsibilities of international companies operating in the U.S. and their obligations to their employees under American labor laws.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.