Jackson avoids suit by paying employees

Rainlotus

http://www.newspress.com/Top/Article/artic...700527062024247 Jackson avoids suit by paying employees SCOTT STEEPLETON, NEWS-PRESS SENIOR WRITER March 16, 2006 12:00 AM An extra day apparently was all Michael Jackson needed to come up with hundreds of thousands of dollars in back wages for employees at his Neverland Valley Ranch. State labor authorities gave the 47-year-old singer until 5 p.m. Wednesday to make good on at least $306,000 in wages dating to last December or face a lawsuit. That's one day past the original deadline set last week by the Department of Industrial Relations. With about 90 minutes to go before the extension was set to expire, Mr. Jackson's representatives made arrangements to distribute payroll "directly to the employees" starting today, said department spokeswoman Renee Bacchini. The total amount of wages and penalties is likely to climb, Ms. Bacchini told the News-Press, as authorities continue their investigation. "We have wage complaints from at least 36 employees," she said. "We will verify everything along the way." 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." Just how much is owed has yet to be determined. "The total amount in back wages paid will be known when the payroll process is completed and we have verified Jackson's records," said Mr. Jones. "DIR will then calculate the total amount in penalties and act to ensure they are paid." He said verified back wage and penalty amounts should be available early next week. Mr. Jackson faces another $69,000 in penalties for failing to have on-the-job or workers' compensation insurance in place for Neverland employees. Department of Industrial Relations investigators stumbled upon that lapse, which dates to January, while investigating claims of nonpayment. A week ago, they barred hired help at the 2,600-acre Los Olivos ranch until Mr. Jackson straightened out the payroll matter. As the days went on, paid security personnel at the front gate's guard shack were replaced by a volunteer family member, and an unnamed veterinarian took on the singer's zoo help as his own employees, ensuring that the needs of the Neverland menagerie were met. On a subsequent visit to Neverland, DIR investigators verified that no one working at the ranch was a Jackson employee. His representatives have told the state that they were trying to obtain workers' compensation insurance, but that doesn't let the singer off the hook for not having it in the first place. "In addition to the wage-related penalties, we will be calculating and collecting the exact amount due the state for Mr. Jackson's failure to have required workers' compensation insurance coverage for his employees," Mr. Jones said.