The penalty is the largest assessed by any of the 17 insurance commissioners or regulatory agencies nationwide investigating Zenefits. It's also one of the largest penalties for licensing violations ever assessed in the department's history, according to the state
Zenefits' difficulties and resulting penalty underscore how some
The fine is the latest in a string of setbacks for Zenefits, including job cuts.
Zenefits has slashed about 355 jobs this year in two major rounds of job cuts, including positions downsized in locations outside of the
"We are pleased to reach a settlement with the
Zenefits offers cloud-based software to help companies manage their human resources activities. The company also underwrites insurance.
It was the Zenefits insurance operations that got the company in hot water.
Earlier this year, an internal investigation by Zenefits determined that it had underwritten some insurance policies without the proper licenses.
Through the internal probe, the company also found that its co-founder,
Soon after the fraudulent procedure was uncovered, Conrad quit as chief executive officer in February. He was replaced by current CEO
"Our enforcement action has resulted in Zenefits paying substantial monetary penalties for their licensing violations and ensures Zenefits complies with all of
Failure to remain in compliance will bring fresh sanctions, Jones warned.
"Businesses and consumers should have confidence that anyone selling insurance to them in
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