Human resources startup Zenefits will pay $3.4 million to 743 currentand former employees the company misclassified as exempt fromovertime and minimum wage rules, the U.S. Department of Labor saidTuesday.

An investigation by the Labor Department’s Wage and HourDivision found Zenefits incorrectly paid account executivesand sales representatives a flat salary. The employees worked inSan Francisco and two now-shuttered offices in Arizona.

Zenefits also entered into an “enhanced compliance agreement”with the labor department, which includes monitoring to avoidfuture misclassification violations. A copy of the document wasn’timmediately disclosed.

“This case allows us to level the playing field for all of theemployers who play by the rules,” said Ruben Rosalez, the Wage andHour Division’s regional administrator in San Francisco. “We arededicated to protecting both workers and employers.”

Jessica Hoffman, vice president for communications at Zenefits, said in an email the company, which createssoftware that manages businesses’ payrolls, insurance offerings andother benefits, is “happy to have this issue behind us.”

“We are pleased that after the Department of Labor's reviewregarding classification of two jobs at Zenefits, there were nopenalties, fines or damages,” she said.

Allegations of missed payments and worker misclassification atZenefits go back to 2015, when the company offered former employeespayouts of approximately $5,000 if they gave up their rights tofile claims over unpaid time-off and overtime, The Wall StreetJournal reported.

In November, Zenefits agreed to pay up to $7 million tosettle claims by California regulators that the company had soldinsurance policies without obtaining the necessary licenses fortheir employees first. Two months ago, the state of New York finedZenefits $1.2 million for allowing unlicensed insurance brokers tosell policies.

The company in February announced that it had laid off about 45 percent of its workforce inan effort to cut costs.