Panda Express Agrees to Pay Over $1 Million to Resolve California Hazardous Materials Training Lawsuit
Panda Express Restaurant Group Inc. has agreed to pay more than $1 million to resolve a civil lawsuit filed by California prosecutors alleging violations of state hazardous materials safety laws at its restaurant locations.
The lawsuit was brought by the Riverside County District Attorney’s Office in coordination with prosecutors from 37 other California counties and two city attorneys. The complaint alleges that the company failed to properly train employees on the safe handling of carbon dioxide used in soda fountain beverage systems.
Under the agreement, Panda Express was ordered to pay $881,925 in civil penalties, $100,000 toward supplemental environmental projects, and $75,000 in cost reimbursement. The judgment also requires the company to comply with California hazardous materials laws at its restaurants throughout the state for the next five years.
The investigation focused on the use and storage of carbon dioxide at more than 500 Panda Express locations across California, including more than 30 restaurants in Riverside County. Carbon dioxide is commonly used in carbonated beverage systems and is typically stored in tanks on site. While the gas is widely used in food service settings and generally safe when handled properly, leaks can go unnoticed and displace oxygen in enclosed spaces, creating a risk of serious injury or death.
California law requires businesses that store or use certain hazardous materials to train employees on safe handling practices and on how to identify potential leaks from tanks and supply lines. Businesses must also submit certified reports to local regulators confirming that training has occurred and that safety information is accurate and complete.
According to the complaint, Panda Express did not provide required training to restaurant personnel at some locations and did not fully or accurately disclose employee training information as required by state law. The lawsuit also addresses reporting failures tied to statutes intended to protect first responders, employees, and customers during hazardous materials incidents.
Although carbon dioxide is not toxic in the traditional sense, it is regulated because of how it behaves in confined spaces. When released, the gas can quickly push oxygen out of the air without clear warning signs. California safety rules classify substances with this type of risk as hazardous, so employees and emergency responders are alerted to potential dangers before entering an affected area.
The lawsuit was based on California’s Hazardous Materials Business Plan requirements, which apply to businesses that store or handle certain regulated substances. The rules are intended to give local regulators and emergency responders advance notice of potential hazards at a facility, allowing them to respond safely if an incident occurs.
In this case, prosecutors argued that gaps in training and reporting created risks the law is designed to prevent, even though no injuries were reported. Enforcement actions under these statutes are designed to address safety issues early, before an incident occurs, rather than after harm has already happened.
Panda Express did not admit any wrongdoing. The agreement followed changes made during the investigation related to employee training and safety reporting. Under the settlement, the company remains subject to court-ordered compliance obligations related to hazardous materials training and reporting.
