California prosecutors order popular fast-food chain to pay $1 Million for business violations

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Last Updated on December 2, 2025 by The HD Post Staff

CALIFORNIA – Riverside County district attorney Mike Hestrin announced December 2 that he, along with 37 other county DAs and two City Attorneys, reached a settlement with Panda Express over violations of California’s hazardous-materials safety laws.

Panda Express was ordered to pay over $1 million in civil penalties, supplemental environmental projects, and costs.

The judgment, filed in Riverside County Superior Court, stems from an investigation into Panda Express’s improper handling of hazardous materials. 

Specifically, it involved carbon dioxide used at more than 500 restaurants across California, including over 30 in Riverside County.

Carbon dioxide leaks could cause death

Panda Express restaurants use carbon dioxide for their carbonated fountain beverage systems. It is typically stored in tanks on-site and is widely used by restaurants. 

According to the Riverside DA’s office, carbon dioxide is safe if handled correctly. If not handled properly, carbon dioxide can leak unnoticed, displacing oxygen from the air, which can result in serious health effects or even death. 

In California, businesses that use carbon dioxide must train employees on safe handling and leak detection. They must also file certified, accurate reports with local regulators confirming the training.

Panda Express failed to train employees on carbon dioxide handling

The lawsuit alleges Panda Express failed to provide employees with the required training on safely handling carbon dioxide.

The settlement also resolves Panda Express’s failure to properly report employee training, as required by California safety laws protecting workers, first responders, and customers.

Under the settlement, Panda Express will pay $881,925 in penalties, $100,000 for environmental projects, and $75,000 in costs. 

The settlement also requires Panda Express to comply with California’s Health and Safety Code at its restaurants statewide for the next five years.

RELATED: California woman admits hiding father-in-law’s death to collect over $175,000 in retirement benefits

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