Averting a potential state lawsuit, Michael Jackson has agreed to pay hundreds of thousands of dollars in back wages owed to dozens of employees at his Neverland ranch, officials said Wednesday.
"Jackson's representatives will distribute payroll directly to the employees" on Thursday, said a statement from the California Department of Industrial Relations.
Jackson had been given a 5 p.m. Tuesday deadline - later extended to Wednesday - to pay up or face a lawsuit.
While still facing a minimum $100,000 fine for failing to pay employees, Mr. Jackson appears to have averted a lawsuit for now, thanks to the agreement with the state.
"There is no need to take legal action in this matter at this time as our main concern that all employees receive wages owed to them is being addressed," said Robert Jones, acting state labor commissioner, in a statement Wednesday afternoon. "As directed in a letter on March 7 demanding payment of wages, arrangements have been made to ensure that all employees are paid wages owed them."
However, Jones said Wednesday that Jackson's payroll records still were being verified. The final calculated figure for back wages and penalties would be available next week, he said.
A call to Jackson's spokeswoman, Raymone K. Bain, was not immediately returned. She earlier declined comment on the issue, saying Jackson does not discuss financial matters because he considers them private.
A call left with Jackson's accountants, Bernstein, Fox, Whitman, Goldman & Sloan LLP, also was not immediately returned.
The labor department also said Jackson's representatives had indicated that they were in the process of obtaining workers compensation insurance for 69 employees of the ranch.
The state ordered all work at the 2,600-acre Santa Barbara County ranch to stop last week because the mandatory coverage for work-related injuries had lapsed.
The order concerned some animal rights activists because it included keepers of Jackson's menagerie, which at times has included elephants and a giraffe.
However, employees were permitted to keep working if they were being paid by another party who had workers compensation coverage.
Investigators went to the ranch on Tuesday and determined that the stop order was being met.
"Security is being handled by members of the Jackson family and a local veterinarian has put the animal caregivers on his payroll," the department statement said.
Mr. Jackson faces another $69,000 in penalties for failing to have on-the-job or workers' compensation insurance in place for Neverland employees.
"We will be calculating and collecting the exact amount," Jones said.
Source: News Press/AP/MJJF/eMJey