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Zenefits’ Legal Counsel Responds to Lt. Gov. Spencer Cox

While some are definitively reporting that Zenefits is no longer banned from Utah, the company’s CEO isn’t as confident.

While some are definitively reporting that Zenefits is no longer banned from Utah, the company’s legal counsel isn’t as confident.

After we reported that Lt. Gov. Spencer Cox said he thinks “there was some misunderstanding by Zenefits and their counsel,” the company’s legal counsel, Tom Welsh, issued the following statement to Beehive Startups:

Update: Since we first published this post, Zenefits’ legal counsel has reached back out to Beehive Startups to update its statement. I’ve bolded the update to highlight the change.

We welcome the Lieutenant Governor’s statements that Zenefits can operate legally in Utah. But the last official communication Zenefits has received from the state of Utah was the Insurance Department’s ruling ordering the company to stop offering its free service to Utah businesses or face massive fines equal to $5,000 per violation, plus confiscation of all the company’s Utah revenue, plus penalties of 3 or 4 times that amount. If that position has changed, then we look forward to receiving written notice from the Insurance Commissioner and his staff to confirm Zenefits’ ability to resume operations. Until then, Zenefits and its free service for small businesses will not be available to new customers in Utah.

Published 12/5/2014