Zenefits will pay $3.4 million to 743 current and former employees the company misclassified as exempt from overtime and minimum wage rules. (Photo: Shutterstock)

Human resources startup Zenefits will pay $3.4 million to 743 current and former employees the company misclassified as exempt from overtime and minimum wage rules, the U.S. Department of Labor said Tuesday.

An investigation by the Labor Department’s Wage and Hour Division found Zenefits incorrectly paid account executives and sales representatives a flat salary. The employees worked in San Francisco and two now-shuttered offices in Arizona.

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