New Zenefits CEO Admits Its Software May Have Allowed Employees To Circumvent Law
The human resources company "self-reported" the issue to the California Department of Insurance, which launched an investigation of Zenefits in 2015 for possible regulatory violations.
The San Francisco Business Times:
New Zenefits Shocker: CEO Admits Company 'May Have' Used Software To Bypass California Law
David Sacks, the new CEO at troubled digital health giant Zenefits, acknowledged in a memo Thursday afternoon to employees that "many of our California sales representatives" had access to a software tool that may have helped them circumvent California law. The software tool, dubbed "Macro," may have allowed employees to complete mandatory online pre-licensing classes needed to obtain California insurance brokers licenses, Sacks said in the memo, a copy of which was given to the Business Times from someone at the company. (Rauber, 2/11)
California Insurance Regulators Probing Zenefits
Software company Zenefits is being investigated by the California Department of Insurance over questions about its business practices, the agency said Thursday. California Insurance Commissioner Dave Jones revealed in a statement that the agency had launched an investigation into Zenefits in 2015. (2/11)