The Ledger
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Utah threatened Zenefits with fines for offering free software to businesses
“In Utah, the insurance commissioner in Utah decided to take action, said that, listen, one of their missions as a DOI was to make sure that there was fair competition between all brokers in the state, and everyone was on a level playing field, and they said th…”
B2B SaaS lacks the natural political advocacy base of consumer tech
“They're just these natural constituencies for consumer technology companies, because there are so many consumers that are using their service. But for like a B to B SaaS company like us, where we're selling to businesses, they're just, Fewer constituents that …”
Utah legislation clarified that Zenefits was never illegal under existing state law
“Technically what the bill did is I think it actually didn't change the law. What it did is it clarified that the existing Utah law never made benefits illegal in the first place. So it was a clarification rather than a change to the law”
Zenefits should have recognized the Utah dispute was political, not legal
“I think what I probably would have done differently in the case of Utah is I probably would have, I wish I had realized earlier in the process that we were in sort of a political battle rather than a legal battle with the Department of Insurance.”
Small business B2B clients are highly influential political allies for startups
“Small business owners in our case, like tend to be politically very well connected. And so when you have, you know, small business owners who, you know, in Utah who have, you know, if you have a company that has You know, 50 or a hundred employees, like, that'…”