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slash disclosures. So hi, guys. I'm Sonal Choxy. I'm from A6 and Zanacinz editorial. I'm here with

Parker, Conrad, from Xenifitz. And Zenefits recently went through a couple of regulatory

issues in Utah and we thought it'd be interesting to hear their perspective and also what

other startups might be able to take away from that experience. So Parker, do you want to just kind of give us a really quick summary of what went down?

Yeah, so basically what happened is Zenefits is a service that sort of helps companies

manage all of their HR in sort of one place.

So a lot of different specific individual functions like payroll and medical insurance

and commuter benefits and time and attendance software and FSAs and things like that all through

one central system and a law online so that you don't have to spend a lot of time running around

doing a lot of paperwork and setting people up in all different places. And one of the sort of interesting wrinkle in our business model is that we give the core system way for free

and we make money in a variety of different ways, but one of them is that we act as a broker

on companies' lines of health insurance.

And in most states, you know, the regulators have said, well, you know, this isn't really, this doesn't look like the kind of thing that we should be getting involved in, and they've taken no action. But in Utah, the insurance commissioner in Utah decided to take action and said that listen to one of their missions as a DOI was to make sure that there was fair competition between all brokers and the state,

and everyone was on a level playing field.

And they said that Zenefits' technology

actually gave us an unfair advantage

in competing for these clients

because we made it so easy for companies

to get up and running with insurance

...