San Francisco startup Zenefits bans sex and alcohol in the office

Former CEO of Yammer David Sacks sits in his office, Monday February 13, 2012, in San Francisco, Calif. He's now the CEO of software startup Zenefits. Former CEO of Yammer David Sacks sits in his office, Monday February 13, 2012, in San Francisco, Calif. He's now the CEO of software startup Zenefits. Photo: Lacy Atkins, The Chronicle Photo: Lacy Atkins, The Chronicle Image 1 of / 38 Caption Close San Francisco startup Zenefits bans sex and alcohol in the office 1 / 38 Back to Gallery

Whiskey shots, kegs of beer, bottles of Champagne, packs of cigarettes, quickies in the stairwell.

The makings for a frat house party?

Nope, these were all allegedly a part of the culture at San Francisco software startup Zenefits.

But now, the party is over (which is probably a good thing for a company operating in the highly regulated health-insurance industry).

The new chief executive David Sacks is cracking down on inappropriate behavior and has banned alcohol from the SoMa-based office, the Wall Street Journal reports.

The Journal obtained an email sent to employees last month that gives a sense of the spring break vibe that once permeated the offices, especially the sales department, under the leadership of the former CEO Parker Conrad.

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Emily Agin, the company's director of real estate and workplace services, wrote:

"It has been brought to our attention by building management and Security that the stairwells are being used inappropriately....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. Please respect building and company policy and use common sense..."

Taking over the reins of the health-insurance brokerage company this month, Sacks is reinforcing this message to his staff and asking employees to stop celebrating the signing of new clients with rounds of shots.

"As part of our commitment to making this a great place to work, we will find other ways for employees to socialize and have fun," Sacks wrote in a memo, according to BuzzFeed.

Immature employee behavior isn't the only issue Sacks is tackling. The fast-growing company started under Conrad was also under question by state regulators for using questionable business practices. For example, the Journal reports, Zenefits "developed a software tool that enabled sales representatives to complete online-training courses more quickly than legally required to obtain an insurance license.

Steering Zenefits in a new direction, Sacks is making sure the company admits its mistakes and accepts responsibility.

"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 spokesperson Kenneth Baer wrote in an email. "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."

This is a good thing, because while Zenefits employees might appreciate a good party, they also reportedly work very hard, readily putting in 15-hour days, according to the Journal. Maybe that's why they were doing shots.