• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
TechFuture of Work

Zenefits Settles Compliance Issues With 3 More States

By
Heather Clancy
Heather Clancy
Down Arrow Button Icon
By
Heather Clancy
Heather Clancy
Down Arrow Button Icon
September 13, 2016, 3:20 PM ET

Human resources software Zenefits said Tuesday it has resolved investigations into its licensing practices with Arizona, Minnesota, and New Jersey.

All three settlements carried penalties, the company acknowledged, although it didn’t disclose the amounts. According to orders published on government web sites for New Jersey and Arizona, Zenefits was ordered to pay insurance regulators $100,000 and $15,000 for those states, respectively. The amount for Minnesota wasn’t published of this writing.

The startup reached settlements over the summer with South Carolina and Tennessee; the latter fined it $62,500 for “admitted unlicensed activity” in the state, according to an official statement. “Under the company’s past leadership, compliance with insurance laws and regulations was almost an afterthought,” said Tennessee insurance commissioner Julie Mix McPeak.

Delaware opted to close its investigation into the company’s licensing practices with no fine, according to Zenefits.

A Zenefits spokesman described the other state penalties as “fair and generally all in line with each other.”

The new settlements bring the total number of states where Zenefits has resolved its licensing issues to six. The company may still face fines from California, Massachusetts, New York, and Washington—all of which were believed to be investigating Zenefits’ business practices, according to a Buzzfeed story from late last year.

Get Data Sheet, Fortune’s technology newsletter.

In February, Zenefits parted ways with founder and CEO Parker Conrad and acknowledged that the software company’s internal processes for ensuring compliance with insurance regulations had been “inadequate.” As a result, some brokers were representing insurance policies in certain states without the proper licenses, it disclosed.

Conrad’s replacement David Sacks has moved quickly to mandate tighter licensing requirements. In June, he declared victory in that quest.

As of Tuesday, Zenefits employed 250 licensed brokers who hold an estimated 10,000 state licenses. It is also taking steps to publish the application it uses internally to manage its licensing processes, called Licensing+, so that other organizations can use it.

The controversy has cost the startup dearly this year. In late June, Zenefits slashed its valuation to $2 billion from $4.5 billion.

About the Author
By Heather Clancy
See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.


Most Popular

placeholder alt text
Success
In 2026, many employers are ditching merit-based pay bumps in favor of ‘peanut butter raises’
By Emma BurleighFebruary 2, 2026
2 days ago
placeholder alt text
Cybersecurity
Top AI leaders are begging people not to use Moltbook, a social media platform for AI agents: It’s a ‘disaster waiting to happen’
By Eva RoytburgFebruary 2, 2026
2 days ago
placeholder alt text
Politics
Meet the Palm Beach billionaire who paid $2 million for a private White House visit with Trump
By Tristan BoveFebruary 3, 2026
19 hours ago
placeholder alt text
Future of Work
‘You’re not a hero, you’re a liability’: Shark Tank’s Kevin O’Leary warns Gen Z founders to stop glorifying hustle culture
By Jacqueline MunisFebruary 2, 2026
2 days ago
placeholder alt text
Personal Finance
Current price of silver as of Monday, February 2, 2026
By Joseph HostetlerFebruary 2, 2026
2 days ago
placeholder alt text
Economy
President Trump just missed a key legal deadline for his spending plans—stoking economists’ fears over the $38.5 trillion national debt
By Eleanor PringleFebruary 3, 2026
23 hours ago

Latest in Tech

CryptoCryptocurrency
Crypto crime-fighting startup TRM Labs notches $1 billion valuation with new $70 million funding round
By Leo SchwartzFebruary 4, 2026
56 minutes ago
karp
AIMarkets
Palantir CEO Alex Karp says Trump has a point about the AI race: ‘there’s a real hesitance to adopt these kind of products in the West’
By Nick LichtenbergFebruary 4, 2026
2 hours ago
Startups & VentureElon Musk
Nevada legislators blast Boring Company over safety and environmental violations as Elon Musk-owned startup declines to testify in hearing
By Jessica MathewsFebruary 3, 2026
8 hours ago
AIAmazon
Amazon AWS CEO Matt Garman pushes back against Elon Musk’s space data centers plan
By Alexei OreskovicFebruary 3, 2026
12 hours ago
broker
AIMarkets
Oracle defused ‘the key risk going into 2026,’ BofA argues, but the market isn’t buying it
By Nick Lichtenberg and Eva RoytburgFebruary 3, 2026
14 hours ago
Image of Moltbook app logo on a smart phone with another image of the Moltbook logo in the background.
AIEye on AI
Moltbook is scary—but not for the reasons so many headlines said
By Jeremy KahnFebruary 3, 2026
15 hours ago