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Panda Express Ordered to Pay Over $1M for Violating California Hazardous Materials Laws

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Published on December 03, 2025
Panda Express Ordered to Pay Over $1M for Violating California Hazardous Materials LawsSource: Ajay Suresh from New York, NY, USA, CC BY 2.0, via Wikimedia Commons

Panda Restaurant Group Inc., the company that operates Panda Express, has been hit with a hefty fine exceeding $1 million for numerous violations of California's Hazardous Materials Business Plan laws. This decision follows a civil lawsuit alleging unsafe handling of carbon dioxide at the eatery's more than 500 Golden State locations, according to a news release obtained by KTLA. The gas, commonly used in restaurants for carbonated beverage systems, is stored in tanks on-site and can pose serious health risks if leaked.

The court case, initiated in the Riverside County Superior Court, delves into accusations that Panda Express did not adequately train its employees to safely manage carbon dioxide. And, they failed to accurately report this training, which is a requirement under state law. This issue is more than a minute oversight; it concerns the very air employees and customers breathe, the invisible hazard that can silently fill a room if proper safety measures aren't vigilantly pursued. The lawsuit has brought to light critical failings at Panda Express locations across California, as noted in an announcement shared by the Riverside County District Attorney’s Office on their website, rivcoda.org.

The settlement, reached after Panda Express executed steps to meet state regulations through employee training and record updates, imposes $881,925 in civil penalties. The chain also has to funnel $100,000 toward supplemental environmental projects and cover $75,000 in cost reimbursement. These dollar figures translate to commitments from Panda Express to safeguard against the dangers that lurk unseen in their establishments, a campaign for compliance that they must adhere to over the next half-decade.

Leading the investigation, the Riverside County District Attorney’s Office, in collaboration with district attorneys from other jurisdictions, including Marin, San Francisco, San Joaquin, and Solano counties, have put Panda Express under an obligatory legal compliance. The company is now tasked to strictly follow Chapter 6.95 of the California Health and Safety Code at its restaurant locations statewide. This extends beyond a mere financial penalty; it's a directive to better protect the welfare of employees, customers, and first responders who could potentially walk unknowingly into a perilous situation involving hazardous materials, as articulated in the earlier communications from the district attorney's offices involved in the case.