Zenefits Faces Investigation by California Regulator
- Insurance sales staff used software to bypass training rules
- State probe follows resignation of co-founder and CEO Conrad
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Zenefits has been under investigation by the California Department of Insurance since last year, the state agency disclosed, saying the resignation of co-founder and Chief Executive Officer Parker Conrad earlier this week doesn’t resolve compliance issues at the human-resources software startup.
“New technologies and new business models can bring value and convenience to California consumers, but businesses deploying new technologies and new business models must comply with California’s strong consumer protection laws,” Insurance Commissioner Dave Jones said in a statement.