Work Halted At Neverland Ranch

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Work Halted At Neverland Ranch

Mar 9, 2006 4:12 pm US/Pacific

(AP) LOS OLIVOS, Calif. The state has ordered Michael Jackson's Neverland Ranch shut down because its workers compensation insurance policy had lapsed.

Jackson also was fined $69,000.

California Department of Industrial Relations spokesman Dean Fryer says "The "stop order" was issued after a worker who had been injured complained Tuesday that he did not have the state-required health coverage.

Regulators determined that the coverage for 69 employees at the Santa Barbara County ranch had lapsed on Jan. 10.

Jackson has been living in the Persian Gulf nation of Bahrain since shortly after being acquitted of child molestation charges last year.

Fryer says the ranch operators have five days to appeal the order and fine.

(© 2006 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

source: cbs2.com/entertainment/local_story_068191424.html

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Michael Jackson fined over Neverland labor miscues
State takes action over unpaid wages, lapsed workers' comp

Friday, March 10, 2006; Posted: 1:06 a.m. EST (06:06 GMT)

(CNN) -- California officials have fined Michael Jackson nearly $170,000 and ordered employees at the pop star's Neverland Ranch to stop working, after finding that employees had not been paid since December and the ranch's workers' compensation coverage had been allowed to lapse.

On Thursday, the California Department of Industrial Relations slapped a "stop order" on Neverland, which prohibits employees from going back to work until workers' compensation coverage is restored. It also fined Jackson $69,000 for the lapse.

On Tuesday, the same agency sent a letter demanding that Jackson pay employees at least $306,000 in back wages by next week, as well as a fine of more than $100,000 for failing to pay wages.

If the back wages and penalties aren't paid by March 14, the department "will pursue appropriate legal action," the letter said.

Jackson has not been living at Neverland in recent months. Shortly after he was acquitted on child molestation charges in June, he relocated to Bahrain, a small nation in the Persian Gulf.

Dean Fryer, a spokesman for the California Department of Industrial Relations, told CNN Thursday that the agency is investigating approximately 47 complaints from employees about unpaid wages. It was during that investigation that state officials discovered that Neverland no longer had workers' compensation coverage, he said.

"There have been ongoing problems with wages at Neverland, but we were surprised the ranch would let its workers' comp policy lapse as well," Fryer said.

"We were tipped by an employee filing a wage claim against the ranch for unpaid wages," he said. "We were told that the ranch had no workers' compensation coverage. We looked into our data bases and found that their policy lapsed January 10, and we moved forward to ensure the protection of employees by issuing a 'stop order.'"

Thursday's $69,000 fine amounts to $1,000 for each of the 69 employees that the ranch had on its payroll when it filed a tax report in December, he said.

The entertainer's accounting firm advised all workers Thursday that they cannot report for work until a workers' compensation policy is secured, according to Fryer.

Jackson must secure the policy immediately, ideally within 24 to 48 hours, Fryer said. If he fails to do so, the state will not allow him to maintain employees at Neverland, essentially shutting down the ranch.

If a new policy is secured, Jackson will have five days to appeal the "stop work" order and get clearance for employees to return to work. State investigators will be monitoring the situation at Neverland to ensure employee safety.

Neverland, equipped with an amusement park and a zoo, figured prominently in the child molestation case against Jackson.

Prosecutors charged that the one-time King of Pop used the ranch's playful atmosphere to lure teen-age boys for his own sexual gratification. Jackson steadfastly denied the charges, insisting Neverland was a haven for innocent fun.

After 32 hours of deliberation, a Santa Barbara County jury acquitted Jackson on all 10 charges lodged against him.

During the trial, Jackson's representatives said he had no plans to sell Neverland or leave the country. They also denied assertions by prosecutors that he was facing severe financial problems.

CNN's Dree De Clamecy contributed to this report.

source: cnn.com

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State shuts down Neverland

SCOTT STEEPLETON, NEWS-PRESS SENIOR WRITER

March 10, 2006 12:00 AM

State authorities descended on Neverland Valley Ranch on Thursday morning with an order that bars Michael Jackson from employing workers at the estate until he pays $470,000 in fines and back wages.

The action by the state Department of Industrial Relations came after complaints from at least 30 employees who say they have not been paid in months.

The stop order at the 2,600-acre compound in Los Olivos essentially bars Mr. Jackson from using anyone other than family members to keep things running until he pays employees what they're owed and reinstates workers' compensation insurance, department spokesman Dean Fryer said.

"We have been receiving quite a number of wage complaints," Mr. Fryer told the News-Press. "Apparently the employees haven't been getting paid since December."

The stop order was served at 9:37 a.m. and affects all operations at the ranch, including people who work in the zoo -- an issue labor officials considered before taking action.

"They are employees of the ranch," said Mr. Fryer. "We have contacted local animal organizations to make them aware that there may be a need for some assistance."

Despite the order barring employees, several were still at the ranch throughout the day Thursday.

According to the stop order, obtained by the News-Press, Mr. Jackson has until March 24 to pay a $69,000 fine for failing to provide workers' compensation insurance for 69 employees.

Letting his workers' comp policy lapse apparently is not Mr. Jackson's only problem at this point. In a demand letter dated March 7 and also obtained by the News-Press, Deborah Graves, staff counsel for the state Division of Labor Standards Enforcement, tells the singer: "As you are aware, over 30 employees have filed wage claims . . . We've determined that the wages currently due and owing exceed $306,000."

Mr. Jackson has until Tuesday to pay up. The letter also states that failure to pay those wages will cost another $100,000 in penalties.

Robert Sanger, a member of Mr. Jackson's child molestation trial defense team, told the News-Press late Thursday that, while not directly involved in the labor matter, he was briefed on it and is aware of an effort to reorganize Mr. Jackson's finances.

"I have been assured that no matter what is going on in respect to Neverland, that the animals are being well taken care of," Mr. Sanger said. "I can only believe that this is all a temporary matter and will be resolved soon."

Mr. Jackson has been said to have little to do with his day-to-day financial affairs, and instead relies on others in such matters.

Since being acquitted of all charges in the child molestation trial, he has been spending much of his time in the Persian Gulf kingdom of Bahrain and apparently was not at Neverland on Thursday.

State officials were apparently looking into payroll practices at the ranch when they stumbled upon the insurance matter.

"We got a tip from an employee who came in to file a wage complaint that there was no workers' compensation coverage," said Mr. Fryer. "He indicated a co-worker was injured recently and there was no coverage. When we started looking into it, we discovered that their workers' compensation coverage lapsed on Jan. 19.

"Workers' compensation is there to protect employees," Mr. Fryer added. "When there's an injury on the job, it covers those injuries."

The stop order means "the employer can not proceed with any work activities with employees," said Mr. Fryer. "An employer can operate the business on his own with immediate family members, but beyond that, he needs workers' compensation coverage if he has employees."

When officials arrived to serve the order, a security guard said they had to stay out. "We went to the property and were denied access, so we left it with a security guard at the gate," said Mr. Fryer.

If Mr. Jackson fails to comply with the order and demand for payment, he faces even more legal trouble.

"We can assess penalties. They can get pretty steep -- the daily wage of an employee, up to 30 days," said Mr. Fryer. "Then there's interest due to those employees and attorneys' fees if we have to go to court."

Because Mr. Jackson's whereabouts are not known, copies of the stop order and demand letter were sent to his accountant in Los Angeles.

As for the zoo, Mr. Fryer said, "We'll work with a representative to ensure that steps are taken to ensure care for the animals."

e-mail: [e-mail]

source: newspress.com

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Agency clamps down on Michael Jackson
By Quintin Cushner/Senior Staff Writer

It apparently doesn't pay to work for Michael Jackson.

All employees at Jackson's Neverland Valley Ranch near Los Olivos were ordered home Thursday, and the singer was fined $69,000, for allegedly not paying state-mandated workers' compensation insurance.

The California Labor Commission this week sent Jackson a letter threatening legal action if he does not pay $306,000 in back wages to employees who allegedly have not been paid since Dec. 19, said agency spokesman Dean Fryer.

The commission has received complaints from 46 Neverland employees, Fryer said. Jackson has until Tuesday to make the payments or face unspecified “legal action” and a $100,000 fine, according to the letter, sent Tuesday.

Jackson, 47, who reportedly has lived mainly in Bahrain since his June 13 acquittal on child-molestation and related charges, was not on the ranch when an enforcement officer delivered the order, said spokeswoman Raymone Bain.

“It's fairly well known he's been overseas,” Bain said. “... I'm certain that all of this is going to be resolved.”

Bain declined to answer further questions.

Workers' compensation insurance for employees at Neverland lapsed in early January, Fryer said. Jackson on Thursday was fined $1,000 for each of the 69 employees at Neverland.

Deputy Labor Commissioner David Cano arrived at the ranch - at 5225 Figueroa Mountain Road - about 9:30 a.m. Thursday to serve the “stop order” barring labor at Neverland.

Ranch security guard Curtis Gordon stopped Cano from entering the property for inspection, Fryer said.

“We were not granted access to the ranch, so we could not see if anyone was actually working,” Fryer said. “The security guard was working, and as long as he's working at his post they are not in compliance.”

County Animal Services Director Jan Glick, who was informed of the order Thursday, said she understood staff was still on the ranch - a possible violation. Glick said her agency was notified because of the zoo animals Jackson keeps on the property.

“We're standing by and we're ready to help,” Glick said. “But our understanding is there's still staff on the ranch.”

Unless he chooses to appeal, Jackson must obtain insurance and pay the fine by March 24, according to the stop order. No work at the ranch can legally continue until the insurance is paid.

The commission cannot file criminal charges, but does refer cases to prosecutors as it sees fit, Fryer said.

The commission informed the Santa Barbara County District Attorney's Office of the order, but did not request its assistance.

“It is a misdemeanor when an employer fails to have workers' compensation,” said Assistant District Attorney Pat McKinley. “However, the case has not been referred to us (for prosecution).” All employers in California are required to purchase workers' compensation insurance for their employees. The insurance is used to fund medical coverage for employees injured on the job.

Jackson has at various times employed maids, gardeners, chefs, animal tenders, firefighters, security guards, and amusement park operators on his 2,700-acre ranch.

Quintin Cushner can be reached at 739-2217 or [e-mail].

March 10, 2006

source: santamariatimes.com

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Jackson granted payment extension

Singer Michael Jackson has been granted an additional 24 hours to pay wages owed to workers on his Neverland ranch.
Jackson owes £200,000 to staff who say they have not been paid since December. He faces being sued by Calfornian authorities if he fails to pay up.
The singer's financial representatives have contacted the state Department of Industrial Relations to say "they are trying to come up with the money".
Jackson, who is overseas, was cleared of child abuse charges in June 2005.
He has until 1700 California time on Wednesday (0100 GMT on Thursday) to find the money.
"They're trying to work with us" said Department of Industrial Relations spokeswoman Renee Bacchini.
"That's a normal course of business," she said. "If somebody comes forward with good faith, we would be reasonable."

Insurance fine

No staff are currently being allowed to work on the 1,100 hectare (2,800 acre) Neverland estate in California.
Gardeners and maintenance staff for Jackson's amusement park are employed as well as domestic staff in the house.
Jackson was fined £97,000 in January for failing to renew employer's insurance. He has 30 days to appeal against hat fine, which was issued last week.
The animals in the ranch's zoo are to be cared for by the local authority, and have included elephants, giraffes, snakes, tigers and a crocodile
Jackson's spokeswoman, Raymone Bain, said the singer does not comment on matters involving his finances because he considers them to be private.
Jackson is currently living in Bahrain, but has denied rumours published in a British newspaper last weekend that he plans to relocate to London.
"He's not purchased a house in London, he's not been scouting schools for his kids, he has no intention to moving to London," said Ms Bain.
"This is totally erroneous and they need to stop it."

source: bbc.co.uk

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