"Zenefits is an example of an internet-based startup whose former leaders created a culture where important consumer protection laws were broken — a bad strategy that placed the company at risk and that other startups should not follow," Jones said in the statement. A spokeswoman for Zenefits did not immediately respond to a request for comment. Zenefits co-founder and former Chief Executive Parker Conrad resigned in February amid revelations that employees were not meeting training and licensing requirements. Multiple states launched investigations into the company's practices.

http://www.reuters.com/article/us-zenefits-penalty-idUSKBN13O05N