State To Audit Neverland Payroll
March 20th, 2006Payday apparently came for workers at Neverland Valley Ranch.
Now state labor authorities want to find out whether Michael Jackson paid his hired help their back wages in full.
“We will now audit the payroll records to ensure that all employees were paid the proper amount owed them and that proper payroll withholdings were deducted,” Robert Jones, acting labor commissioner, said in a statement Friday. “The audit will also include the calculation of penalties due for violation of state law requiring prompt payment of wages.”
Labor authorities said the singer failed to pay at least $306,000 in wages dating to December 2005. In addition to that amount, he owed at least $100,000 in penalties.
On top of that, the singer is being penalized $69,000 for apparently not providing workers’ compensation insurance. That lapse dates to January.
In his statement, Mr. Jones said Jackson representatives were in the process of obtaining workers’ compensation insurance. Mr. Jackson has been silent on the wage and insurance matters.
A week ago, 69 employees were at the ranch. It’s not known how many remain.
Speculation has run wild in recent days that perhaps Mr. Jackson had shut down Neverland, with its main house, guest house, movie theater, amusement park, steam train and zoo, for good.
Early Friday, Jackson spokeswoman Raymone Bain tried to dispel those rumors.
“It is public knowledge that Mr. Jackson currently resides in the Middle Eastern country of Bahrain. He therefore decided to close his house and reduce his work force,” she said in a statement. “This is a common practice when a residence is vacant for an extended period of time.”
“Reports indicating that Neverland has been closed or ’shut down’ for good are inaccurate,” she said.
The state last week ordered Mr. Jackson to have no hired help at his property until he paid the back wages and secured workers’ compensation insurance. Since then, security duties have been taken over by volunteer family members, and an unidentified veterinarian put animal caregivers on his payroll.
Source: News Press
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