Zenefits Could Face Misdemeanor Charges In California, Felony Charges In Washington
Both states have opened investigations on the startup, which admitted to having its employees sell insurance without the proper licensing.
The San Francisco Business Times:
Zenefits Executives And Employees Could Face Criminal Charges
Regulatory agencies in California and Washington caution that Zenefits and current or former employees could face criminal charges related to the alleged sale of health insurance without proper brokers' licenses. In Washington state, a decision on whether to pursue legal penalties could come in a matter of weeks, according to a spokeswoman for the Office of the Insurance Commissioner. (Rauber, 2/17)