Zenefits’ software: no longer free in Washington

Washington Insurance Commissioner Mike Kreidler ordered Zenefits to stop distributing its employee benefits software for free, noting the tactic violates Washington state insurance law against inducements. The inducement law in Washington permits a licensed producer to offer no more than $100 per person during a consecutive period of 12 months. Problem is Zenefits markets its software’s value at $29,100 to $45,000 per year. As a result Zenefits responded that it will charge customers in Washington $5 per employee to use the software. Recall: earlier this week Zenefits has agreed to pay a $7 million fine in a settlement with California regulators, making California the 11th state that Zenefits has settled with, following Arizona ($15K), Delaware, Idaho, Minnesota, New Jersey ($100K), South Carolina, Tennessee, Texas ($550K), Virginia, and Washington ($100K).