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February 11, 2016 at 11:10 AM
This version of the article has been updated to include a response from a Zenefits representative.
Officials at the California Department of Insurance say they are investigating Zenefits Inc. to see whether the company is complying with California laws and regulations.
The department opened the Zenefits investigation last year, officials said in a news release.
Dave Jones, the California insurance commissioner, said he has asked the department’s enforcement branch to “deploy additional investigative resources to the Zenefits investigation.”
Zenefits, a human resources and benefits automation company, announced earlier this week that David Sacks, a former PayPal executive, had taken over from Parker Conrad, a company co-founder, as chief executive officer.
Many news organizations quoted from an internal email, said to be written by Sacks, in which Sacks allegedly told employees, “The fact is that many of our internal processes, controls, and actions around compliance have been inadequate, and some decisions have just been plain wrong.”
See also: Zenefits CEO resigns
The department cannot release information about its Zenefits investigation findings and conclusions until the investigation is completed, officials said.
