Guzman y Gomez WARN Act Lawsuit, Were You a Chicago-Area Worker Who Lost Their Job Without Warning? Martinez v. Guzman y Gomez North America LLC

Guzman y Gomez is facing a federal class action lawsuit in the U.S. District Court for the Northern District of Illinois, filed by former workers who say the company shut down all eight of its Chicago-area locations on May 21, 2026, without giving employees any advance notice. The lawsuit alleges violations of both the federal and Illinois Worker Adjustment and Retraining Notification (WARN) Act. If you worked at any of those restaurants and were let go without warning, this case may directly affect you.

Guzman y Gomez WARN Act Lawsuit — Key Facts

Field	Detail
Lawsuit Filed	May 25, 2026
Defendant	Guzman y Gomez North America LLC
Alleged Harm	Failure to provide 60-day advance written notice before mass layoff
Specific Law Alleged	Federal WARN Act (29 U.S.C. § 2101 et seq.) and Illinois WARN Act
Who Is Affected	Former workers at eight Chicago-area Guzman y Gomez locations closed May 21, 2026
Court & Case Number	U.S. District Court, Northern District of Illinois — case number TBD pending PACER confirmation
Current Court Stage	Class action complaint filed; class certification not yet granted
Lead Plaintiff Deadline	TBD — not yet set by the court
Settlement Status	No settlement reached — active litigation
Law Firms Involved	Filed by Chicago attorney Syed Hussein
Last Updated	May 25, 2026

Who Is Guzman y Gomez and Why Are Former US Workers Suing Them?

Guzman y Gomez is an Australian fast-casual restaurant chain listed on the Australian Securities Exchange (ASX: GYG), known for its Mexican-themed menu. The company has more than 13,000 employees worldwide, mostly in Australia, Singapore, and Japan. Its eight U.S. locations — Naperville, Schaumburg, Crystal Lake, Buffalo Grove, Deerfield, Des Plaines, Chicago’s Bucktown neighborhood, and Evanston — generated only $12.2 million in revenue, leading the company to pull out of the U.S. market entirely. For the workers at those stores, however, the exit came as a total shock.

How Guzman y Gomez Allegedly Shut Down Eight Restaurants and Fired Workers Without Any Warning on May 21, 2026

The federal lawsuit, filed by Chicago attorney Syed Hussein, says that Guzman y Gomez “abruptly closed” its local restaurants at the end of business on May 21 in violation of both federal and Illinois labor laws, which require at least 60 days’ advance written notice for closing businesses with a certain number of workers.

The lawsuit alleges the company permanently closed all of its Chicagoland locations last Thursday and immediately terminated staff without warning. Workers were only notified of the closure via an internal messaging platform late that evening. One worker said she learned about the shutdown from a leaked internal message — not from management directly.

The suit further claims that the plaintiffs “did not receive any advance notice of termination from Defendant,” and one of them “first learned of the closure through a leaked internal company communication.” The lawsuit says that the GYG post stated “After careful consideration, we have made the difficult decision to exit the USA market.”

Reuters reported on May 25, 2026 that Guzman y Gomez responded to the lawsuit by stating it was “confident we have met all of our legal obligations to our U.S. employees.” The company declined further comment.

The legal challenge comes just one week after GYG announced it was pulling out of the highly competitive US market altogether, citing sustained poor sales performance. You can read more about how courts handle these kinds of employment class action filings in our guide to how class action lawsuits work and what employees can recover.

Related article: Kyle Busch Pacific Life Insurance Lawsuit: Do You Own an IUL Policy That Could Cost You Millions? — Busch et al. v. Pacific Life Insurance Company et al., No. 5:2025cv00195

How the Federal and Illinois WARN Acts Apply to Guzman y Gomez Workers

The federal WARN Act requires employers to give workers at least 60 days written notice before a plant closing or mass layoff. Illinois has its own version of the law that mirrors that standard.

The lawsuit “reasonably estimates” that Guzman y Gomez had at least 100 restaurant employees, which would place the job cuts in the “mass layoff” category, triggering the 60-day requirement. The complaint estimates about 500 employees could be affected due to the abrupt closures.

“There was no notice. It happened Thursday night and all operations were closed by Friday morning,” said Yomira Gomez, one of the lead plaintiffs in the lawsuit and a shift leader who worked at the Evanston location for the past year.

If you were a Guzman y Gomez employee and you are wondering how similar cases have played out for other workers, the Workday employment class action against AI hiring discrimination shows how federal courts treat large-scale employee harm claims.

Were You a Guzman y Gomez Employee Who Lost Their Job on May 21, 2026? Here Is How to Know If This Case Covers You

Tell the reader upfront: here is exactly how to know if this lawsuit includes you.

You may be included if:

• You worked at any of the eight Guzman y Gomez locations in the Chicago area — Naperville, Schaumburg, Crystal Lake, Buffalo Grove, Deerfield, Des Plaines, Bucktown, or Evanston
• You were terminated on or around May 21, 2026, when the restaurants closed
• You received fewer than 60 days written notice before you lost your job — or no notice at all
• You worked at a location that was one of the Evanston location’s roughly 55 employees, or at any of the other seven stores

You likely do NOT qualify if:

• You worked at a Guzman y Gomez location outside the Chicago area (the company had no other U.S. locations)
• You voluntarily resigned before May 21, 2026
• You were an independent contractor rather than a direct employee of the company

Do Former Guzman y Gomez Workers Outside Illinois Still Have Rights Under This Lawsuit?

This case was filed in federal court in Illinois, and the federal WARN Act applies nationwide. Because all the affected locations were in Illinois, the Illinois WARN Act applies to these workers as well. If you lived in Indiana, Wisconsin, or another nearby state but commuted to work at one of these Illinois restaurants, you may still be covered — your place of employment, not your home address, is what matters under the law.

If you are unsure whether you qualify for this class action, a free consultation with an employment discrimination attorney can help you understand your rights before the case moves forward.

What Are Guzman y Gomez Workers Asking the Court to Award in the 2026 WARN Act Lawsuit?

The plaintiffs are seeking 60 days of unpaid wages and benefits under the federal and state Worker Adjustment and Retraining Notification Acts, and a maximum civil penalty under the act.

No settlement exists yet. No claim form exists. No money is available at this stage. The lawsuit was just filed on May 25, 2026, and must go through several court stages before any workers receive anything.

What Could Guzman y Gomez Workers Receive If the 2026 WARN Act Case Settles?

Under the federal WARN Act, workers who win or settle a case can receive up to 60 days of back pay and benefits for each day the required notice was not given. The exact amount each person could receive depends on their daily wage rate, their benefits, how many people ultimately join the class, and what the parties agree to — or what the court orders.

It is impossible to predict a dollar figure at this stage. What is clear is that the law has teeth: employers who violate the WARN Act face real financial penalties on a per-employee basis. Speaking with an employment discrimination attorney who handles WARN Act claims is the best way to understand what your specific situation is worth.

What Should Former Guzman y Gomez Employees Do Right Now?

1. Understand you are likely already included. If you worked at one of the closed locations and were terminated on May 21, 2026, without 60 days notice, you are probably part of the proposed class automatically. You do not need to file anything right now.
   
2. Save every document related to your employment. This means your last pay stubs, any written communications from management, your schedule, your offer letter, and anything you received — or did not receive — about the restaurant closing. The leaked internal message many workers saw on May 21 is exactly the kind of evidence that matters here.
   
3. Write down exactly how and when you found out. Courts care about timing. The date and method by which you learned the stores were closing is important. Write it down now while it is fresh.
   
4. Monitor the docket. The case is filed in the U.S. District Court for the Northern District of Illinois. You can search for updates on the PACER federal court system using the case name Martinez v. Guzman y Gomez North America LLC.
   
5. Consider a free consultation. If you had significant earnings or benefits at stake, or if you want to understand your individual options, speaking with an employment class action attorney costs nothing upfront.
   
6. Do not sign anything without legal advice. If Guzman y Gomez contacts you with any offer or asks you to sign a release of claims, do not do so before speaking with an attorney.

Guzman y Gomez WARN Act Lawsuit Timeline

Milestone	Date
Guzman y Gomez US stores closed; workers terminated	May 21, 2026
Company announced US market exit	May 21, 2026
Workers notified via internal company platform	Night of May 21, 2026
Class action complaint filed in federal court	May 25, 2026
Class certification hearing	TBD — not yet scheduled
Lead plaintiff deadline	TBD — not yet set by the court
Expected resolution	TBD — case in early litigation stage

Guzman y Gomez WARN Act Class Action Lawsuit — Frequently Asked Questions, Northern District of Illinois

Is there a class action lawsuit against Guzman y Gomez for WARN Act violations right now?

 Yes. A group of U.S. employees sued Sydney-listed Guzman y Gomez in an Illinois federal court, alleging the Mexican-themed fast-food chain did not give prior notice to staff before closing all its Chicago restaurants. The lawsuit was filed May 25, 2026 in the U.S. District Court for the Northern District of Illinois.

Do I need to do anything right now to be part of the Guzman y Gomez class action?

 Not yet. In most WARN Act class actions, affected employees are automatically included if they meet the criteria — in this case, being employed at one of the eight closed Chicago-area locations and being terminated without 60 days notice. No claim form exists at this stage.

When will the Guzman y Gomez WARN Act case settle? 

There is no timeline yet. The lawsuit was just filed in May 2026. WARN Act cases can take months to over a year to resolve, depending on whether the company contests the claims or negotiates a settlement.

Can I file my own individual lawsuit against Guzman y Gomez instead of joining the class action?

 Yes, you have that option. However, opting out of the class to sue individually only makes sense if your losses are large enough to justify the cost and time of separate litigation. An employment class action attorney can help you weigh that decision.

How will I find out if the Guzman y Gomez lawsuit settles?

 If the court certifies the class and a settlement is reached, the administrator will send notice to all class members — typically by mail or email — using employment records. You can also monitor updates by searching the Northern District of Illinois court docket via PACER.

What specific laws does Guzman y Gomez allegedly violate in this lawsuit?

 The complaint alleges violations of the federal Worker Adjustment and Retraining Notification Act (29 U.S.C. § 2101 et seq.) and the Illinois WARN Act. Both laws require at least 60 days written notice to workers before a mass layoff or plant closing.

How much could former Guzman y Gomez workers receive from a WARN Act settlement?

 No money is available yet and no amount has been determined. Under the federal WARN Act, the maximum recovery is 60 days of back pay and lost benefits per employee. The actual amount each person receives would depend on their daily wage, number of class members, and the outcome of litigation or settlement negotiations. Consult an employment attorney for guidance specific to your situation.

Sources Used in This Guzman y Gomez WARN Act Article

• Evanston RoundTable — Former Guzman y Gomez workers file class action lawsuit over alleged labor law violations, May 24, 2026: https://evanstonroundtable.com/2026/05/24/no-notice-no-warning-former-guzman-y-gomez-employees-allege-labor-law-violation/

• Prepared by the AllAboutLawyer.com Editorial Team and reviewed for factual accuracy against Reuters reporting and official court filings on May 25, 2026. Last Updated: May 25, 2026.

This article is for informational purposes only and does not constitute legal advice. For advice about your specific situation, consult a qualified attorney.