SACRAMENTO — Human resources startup Zenefits will pay up to $7million in penalties under terms of a settlement with Californiaregulators who had accused the San Francisco company of sellinginsurance policies without the proper licenses.

The fine — the largest levied against Zenefits in the nation,according to Insurance Commissioner Dave Jones — consists of $3million for licensing violations and $4 million for employees"subverting" education requirements plus $160,000 to cover thestate's investigation and exam costs. Half of the penalty will bewaived if the company can show continued compliance with applicablelaws in a 2018 review.

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Cheryl Miller

Cheryl Miller, based in Sacramento, covers the state legislature and emerging industries, including autonomous vehicles and marijuana. She authors the weekly cannabis newsletter Higher Law. Contact her at [email protected]. On Twitter: @CapitalAccounts