Red Viper
Assuming you have nothing attached that would obstruct the lens extension and no dirt or other contamination is visible either, my first suggestion is to check the warranty period from "where you bought it" and their policy. It may be covered by them with a replacement (and hopefully one in stock.)
If not, then an asap call to panasonic service is in order.
I can feel your anxiety; good luck for a speedy solution.
Panasonic service said the warranty is on parts, not labor. Grr..this is going to cost at least 160, they said. I haven't tried the repair place, yet. That's next on my list.
The same thing happened to mine a few months ago, but I just got around to taking it in for service yesterday. Fortunately (for me) I bought the extended Ritz warranty and it won't cost me a dime. The camera repair shopsays that they will more than likely just get a replacement lens directly from Panasonic since it is still under the 1 year factory parts warranty. Estimated time for repairs is four to six weeks.
If I were you I would just call Panasonic's warranty service line and get it fixed through them. I believe I read about someone else having the same thing done through Panasonic, and it only cost a little over $100 and the return was maybe two weeks.
In the meantime, you could consider getting a backup camera if you don't already have one.