Online HR benefits services firm Zenefits reached a settlement with the California Insurance Commission for multiple license violations resulting in a $7 million penalty, Insurance Commissioner Dave Jones announced. The penalty is one of the largest penalties for licensing violations ever assessed in the department’s history, according to the commissioner; however, Zenefits was given a 50% discount for remediation efforts, resulting in an actual payment of $3.5 million, plus $160,000 to cover the state’s legal fees.

The suspended portion of the monetary penalty will be reinstated if Zenefits fails to confirm continued compliance with licensing and regulatory mandates based on an examination of the company’s business practices to be conducted in 2018.

Zenefits was charged with allowing unlicensed employees to transact insurance and circumventing insurance agent education requirements.

The California Department of Insurance launched an investigation in 2015, after receiving complaints that Zenefits employees were transacting insurance without a license, according to the insurance commissioner. Shortly after the investigation into Zenefits’ business practices and compliance began, the company announced publicly that they were not complying with insurance laws and regulations, which was followed by the resignation of Zenefits’ CEO, Parker Conrad.

“We are pleased to reach a settlement with the California Department of Insurance, which recognized our remediation efforts by suspending half the fine,” Zenefits’ VP of Communications Jessica Hoffman said in a statement. “We now have a clean bill of health from our lead regulator as well as 16 other states. New management has righted the ship at Zenefits. We’ve moved past these historical issues, and now we’re focused on serving our 20,000+ customers and delivering All-in-One HR to small businesses.”

Zenefits told Staffing Industry Analysts it has also reached eight more settlements in addition to California.