A former employee of Panda Express filed a lawsuit earlier this month after being “constructively discharged” in the Summer of 2019 after returning from a “self-improvement” workshop promoted by the company. The complaint alleges that she was forced to strip down to her underwear, along with all other participants, in a “trust-building exercise.” The plaintiff is suing the company for violations of California’s Fair Employment and Housing Act.

Jennifer Spargifore, the plaintiff in the lawsuit, began working at Panda Express in California in August 2016. According to the lawsuit, throughout her tenure at Panda Express, Ms. Spargifore had endured a subpar working environment and unsupportive management. She was told at one point that she did not have the option of calling out sick and was even called into work during a family funeral. Despite this, Ms. Spargifore argues that she received several pay raises due to her work ethic and still had the goal of reaching management positions and continued to seek promotion.

According to Ms. Spargifore, her supervisor and managers told her that one of the only ways to be considered for promotion was to complete a self-improvement seminar through Alive Seminars. While Panda Express paid for some of their employees to attend, Ms. Spargifore did not have that opportunity and paid out of pocket to attend the four-day program in July 2019.

Ms. Spargifore described the seminar as “bizarre and quickly developed into psychological abuse.” Attendants were constantly berated and told they “don’t matter” and are “nothing.” It became apparent to the plaintiff that the goal of the seminar was not self-improvement, but to “isolate and intimidate” all those in attendance.

The most troubling exercise in the seminar involved all attendees stripping down to their underwear in a “trust-building exercise.” At one point, Ms. Spargifore was forced to “hug it out” with a male colleague while both were still in their underwear. The attendees could not use their cell phones; however, seminar employees were seen recording the attendees and “openly ogling” the female attendees.

All those who attended felt pressure to remain in the seminar because they believed this was the only way to be promoted. However, when Ms. Spargifore returned to work following the seminar, she explained in her complaint that management did not care about her experience, and after her work deteriorated following the humiliation Ms. Spargifore experienced in front of her coworkers, she was constructively discharged from her position that same month, July 2019.

On February 26, 2021, a lawsuit was filed with the Superior Court of California, County of Los Angeles Central District, alleging sexual battery, hostile work environment, intentional infliction of emotional distress, and multiple violations of California's Fair Employment and Housing Act.

The California Fair Employment and Housing Act (FEHA) is administered by the Department of Fair Employment and Housing (DFEH). FEHA passed the California legislature in 1959 to combat sexual harassment and unlawful discrimination in both employment and housing. An individual alleging a complaint against an employer must file with DFEH first, which adjudicates the claim and decides whether further investigation is warranted. DFEH will attempt to resolve the dispute. However, they can recommend legal action if necessary.

Panda Express is an American company founded in 1990 and markets itself as a Chinese restaurant within the fast-food industry. The company’s headquarters are in Rosemead, California. As of 2021, it has approximately 7,000 employees in all of its locations, with roughly $227.30 million in sales each year.

Alive Seminars and Coaching Academy is headquartered in Maywood, CA, and is a 501(c)(3) organization. According to the lawsuit, the non-profit has a close association with Panda Express and conducts its “self-improvement” seminars and workshops exclusively for Panda Express employees.

In September 2020, the United States Government Accountability Office (GAO) published its Report to Congressional Requesters on Workplace Sexual Harassment. The study found limited data nationwide on sexual harassment in the workplace, making it difficult to understand the prevalence, costs, and likelihood. The limited data issue reported by this study is not just a logistical problem but also demonstrates that sexual harassment is historically underreported. The Equal Employment Opportunity Commission (EEOC) reported to GAO that retaliation charges are growing, further hampering an individual’s will to file a complaint against their company.

For Ms. Spargifore, the possible outcomes that DFEH can secure include, but are not limited to, recovery of out-of-pocket losses, an injunction prohibiting the practices in-question, policy changes, and monetary compensation for emotional distress.