I agree the CEO seriously fucked up -- I'm arguing it is actually worse, because he didn't need to do that to build a great business, either -- it was just a lazy shortcut. Zenefits could be a great company without doing things like the macro, and while being compliant with the regulations (or, in cases where the regulations are ambiguous or wrong, at least breaking them in ways which are defensible legally and in the court of public opinion.)
If that's not wrong, I don't want to be right.
Full disclosure: messing with my money IS messing with my emotions.