I've shared the story before, so I won't go into the full details; but I've ran into a co-worker at my resort (who incidentally had just resigned a couple of weeks prior).
In our case it was more surprise/shock/disbelief than embarrassment. I had no way of hiding anyway; I was naked on a lounge chair, legs open w/cock dangling when she saw me. She was naked too; and after the initial surprise, she just faced me in all her naked glory, feet apart and hands on her hips w/pussy fully visible as if to say: "well now that I've seen your cock, you might as well take a good look too!" If there was any embarrassment on her part, it was over with pretty quickly.
My wife was there and also naked; but had not known her well enough to care. They had only fleetingly met at a company picnic.
My wife likes to say that she would not be embarrassed if she ran into someone she knew at the resort. Because they'd likely be naked too; so it would be "even-stevens." I'm not so sure it's true. But I would love to see that happen to her; and see if she would actually sit/stand in front of that person with her pussy fully visible; or try to hide!
