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Zenefits regulatory issues arise in Delaware

The human resources startup is under fire for the way it operates.

Be careful what you open. (Photo by Flickr user Hamza Butt, used under a Creative Commons license)

Cloud-based payroll and benefits startup Zenefits has hit compliance snags rolling out its product in a couple of states — one of which is Delaware. Still, the state chose not to fine the company, Fortune reported.
South Carolina, which fined Zenefits $29,500, and Tennessee, which levied a $62,500 fine, were among the other states where the startup faced regulatory issues.
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Cofounder Parker Conrad has been reported to be working on creating a similar startup.

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