California's Department Of Industrial Relations yesterday confirmed that Michael Jackson's people had begun processing $300,000 dollars in back wages owed to 69 employees at the singer's Neverland ranch. As previously reported, the authorities were threatening to sue Jacko over the unpaid wage bill, though they gave him an extra 24 hours to get things sorted after their original deadline passed on Tuesday.
A spokesman for the Department said yesterday: "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, 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".
The Department also said that they understood that Jackson's people were in the process of renewing their insurance policy that protects Neverland employees. As previously reported, the authorities had told the ranch's staff to not report for work after it was revealed that insurance policy had lapsed.
In addition to covering the costs of the back pay and the insurance policy, Jacko will also be fined by the authorities for his failings as an employer. The fine for failing to pay his staff is likely to be $69,000, a grand for each affected employee. The fine for failing to ensure employees were insured while on site is still to be decided.
Jackson, of course, has not resided at Neverland since the end of last year's child abuse trial. He has been staying mainly in Bahrain since that time, although rumour had it he was currently residing in the UK with a view to setting up home somewhere in the home counties, although his US spokesman has subsequently denied all that.