Enterprise

Zenefits had to tell staffers to stop having sex at work

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Tech startups are known for their flexible culture, which often involves drinking and partying at the office.

But Zenefits, the troubled $4.5 billion startup that recently lost its founder CEO Parker Conrad, may have taken the startup vibe a little too far.

According to a report by The Wall Street Journal's Rolfe Winkler, the company had to ban office sex after used condoms were found in the stairwells, telling its employees in a company-wide email in June to tone down their lewd behavior.

"Cigarettes, plastic cups filled with beer, and several used condoms were found in the stairwell. Yes, you read that right. Do not use the stairwells to smoke, drink, eat, or have sex," the email said.

Zenefits is an HR software maker that raised more than $500 million at a $4.5 billion valuation. But it has recently been facing a lot of controversy, including missed revenue targets, regulatory violations, and a rambunctious, frat-like office culture.

Earlier this month, Conrad suddenly stepped down from his CEO position after it was found that Zenefits violated some compliance measures. He was replaced by COO David Sacks, a veteran tech entrepreneur who founded Yammer and who is moving quickly to overhaul Zenefits' culture and repair its tarnished image.

Business Insider reported last week that Zenefits banned drinking alcohol at the office in a move to clean up its corporate culture.

A Zenefits representative sent Business Insider the following comment: "As Zenefits' new CEO has made clear, it is time to turn the page at Zenefits and embrace a new set of corporate values and culture. Zenefits is now focused on developing business practices that will ensure compliance with all regulatory requirements, and making certain that the company operates with integrity as its number-one value."

You can read the full Journal article here>>

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Eugene Kim
Eugene is Business Insider’s Chief Tech Correspondent, where he leads coverage of Amazon. His reporting spans the company’s retail and logistics operations to AWS, Alexa, and its internal culture.Previously, he worked at CNBC, Fortune Magazine Korea, and Japan's Yomiuri Shimbun. He holds degrees from NYU and Columbia University’s Graduate School of Journalism.In 2022, Eugene reported on internal documents indicating that Amazon allegedly used deceptive tactics to enroll customers in Prime and made cancellation difficult. The Federal Trade Commission sued Amazon the following year, citing his reporting. The case ended in a record $2.5 billion settlement in 2025.His work has received multiple honors, including the SF Press Club’s Bay Area Journalism Award and SPJ NorCal’s Excellence in Journalism Award.Eugene lives in the Bay Area. Contact him via email at ekim@jkmperu.com, or Signal, Telegram, or WhatsApp at 650-942-3061. Use a personal email address, a nonwork WiFi network, and a nonwork device; here's our guide to sharing information securely.