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State Says Michael Jackson Will Pay Neverland Workers Back Wages
By Associated Press - March 17, 2006

LOS OLIVOS, Calif. (AP) _ Michael Jackson has agreed to pay his Neverland Ranch employees hundreds of thousands of dollars in back wages, heading off a threatened lawsuit from the California Department of Industrial Relations.

Under terms of the deal, the entertainer was to make the payments Thursday.

"Jackson's representatives will distribute payroll directly to the employees," the state Department of Industrial Relations said in a statement.

Jackson had been given a 5 p.m. Tuesday deadline, later extended to Wednesday, to pay up or face a lawsuit by the state.

"There is no need to take legal action in this matter at this time," Robert Jones, acting California labor commissioner, said Wednesday.

Jackson spokeswoman Raymone K. Bain said she "never doubted" the matter would be resolved.

Authorities contacted Jackson's financial representatives earlier this month after receiving complaints that at least 30 Neverland Ranch workers had not been paid since Dec. 19 and were owed $306,000. He was also told he would have to pay about $100,000 in penalties.

Jones said Wednesday that Jackson's payroll records were being verified and final figures would be available next week.

A message left with Jackson's accountants, Bernstein, Fox, Whitman, Goldman & Sloan LLP, was not returned.

Labor officials also said Wednesday that Jackson's representatives have indicated they are in the process of obtaining workers compensation insurance for 69 ranch employees.

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.

Investigators went to Neverland on Tuesday and determined the order was being met.

The action concerned some animal rights activists because the order 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, which labor officials said was the case with the animals' handlers.

"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.

Jackson still faces a fine for allowing the coverage to lapse. It originally was estimated at $69,000.

"We will be calculating and collecting the exact amount," Jones said.

 
 

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