(Bloomberg) — California’s insurance regulator said Zenefits has agreed to pay as much as $7 million over licensing violations. The human resources startup will pay $3.5 million upfront and will be on the hook for the rest if additional violations are found or if it fails a follow-up compliance test in 2018, the insurance department said.

The fine is the largest single penalty assessed against Zenefits, the regulator said. Fines from other states this year totaled about $1 million, Zenefits said. The company said its resolved issues in 17 states.

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