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.

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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