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Zenefits Is Under Investigation In California

A few days after Zenefits CEO Parker Conrad resigned, the company is under scrutiny for its compliance with California laws.

Zenefits Is Under Investigation In California
[Photo: via Zenefits]

Zenefits, the $4.5 billion health insurance brokerage startup whose CEO stepped down on Monday, is being investigated by California regulators, according to BuzzFeed News. The California insurance commissioner will make the news public on Thursday, BuzzFeed reports, though the investigation has been underway since last year.

The issue in question is whether Zenefits is abiding by the state's laws and regulations; a similar investigation is already being conducted in Washington. As the company's home state and biggest source of business, California is an invaluable market for Zenefits.

Update: A Zenefits spokesperson sent us the following statement: "We are communicating and cooperating fully with regulators with regards to this issue that we discovered and self-reported to them."

Read more over at BuzzFeed.

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