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InsighthubNews > Business > Panda Express pays fine for failing to train employees on handling of hazardous materials
Business

Panda Express pays fine for failing to train employees on handling of hazardous materials

December 3, 2025 2 Min Read
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Panda Express has agreed to pay $1 million to settle a lawsuit alleging it failed to train employees on how to handle soda machines.

The parent company of a Rosemead-based fast-casual Chinese-American food chain had to pay a fine for failing to educate employees on handling carbon dioxide used in soda fountain systems.

The company did not respond to requests for comment.

Carbon dioxide is usually stored in tanks and is widely used in restaurants. California’s hazardous materials law requires employees to receive training on carbon storage and handling. Leaks that displace oxygen can cause serious harm or even death.

Restaurants must certify their employees and submit a report to local regulatory authorities confirming such training.

The lawsuit was filed in the wake of a Riverside County investigation that found Panda Express failed to train restaurant employees on the safe handling of carbon dioxide and failed to disclose employee training information as required by state law.

Founder of , Panda Express operates more than 500 stores in California, 30 of which are in Riverside County.

“This should be a wake-up call for restaurants in general because we don’t see many violations like this,” said Richard Shank, senior principal at Technomic, a research and consulting firm for the food service industry. “Typically, beverage stations are leased from beverage suppliers and serviced by third parties, including CO2, so we may have identified gaps in training that were unknown to Panda.”

“Panda’s work culture is built on a strong training foundation,” he added, “so we believe this settlement demonstrates the need for clarity in the roles between beverage suppliers and restaurants.”

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The Riverside County District Attorney’s Office said the settlement was reached because Panda Express took steps to comply with California law regarding training, reporting and updating training records.

Panda Express was ordered to pay $881,925 in civil penalties, $100,000 in additional environmental project costs, and $75,000 in cost reimbursement.

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