Zenefits has settled improper-licensing claims with regulators in at least seven other states this year: Arizona, Delaware, Minnesota, New Jersey, South Carolina, Tennessee and Washington. (Photo: Getty)

SACRAMENTO — Human resources startup Zenefits will pay up to $7 million in penalties under terms of a settlement with California regulators who had accused the San Francisco company of selling insurance policies without the proper licenses.

Related: Zenefits cuts valuation to $2 billion, makes deal with investors

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