SACRAMENTO — Human resources startup Zenefits will pay up to $7 million in penalties under terms of a settlement with California regulators who had accused the San Francisco company of selling insurance policies without the proper licenses.
The fine — the largest levied against Zenefits in the nation, according to Insurance Commissioner Dave Jones — consists of $3 million for licensing violations and $4 million for employees "subverting" education requirements plus $160,000 to cover the state's investigation and exam costs. Half of the penalty will be waived if the company can show continued compliance with applicable laws 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
