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.

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

  • Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

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