Michael Jackson's Payday

In order to avert a potential lawsuit, Michael Jackson has agreed to pay hundreds of thousands of dollars in back wages owed to dozens of employees at his Neverland ranch, state officials said yesterday.

Jackson's representatives will distribute payroll directly to the employees today, according to a statement from the California Department of Industrial Relations. 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," said Robert Jones, acting California labor commissioner. Authorities sent a letter to Jackson's financial representatives on March 7 demanding to pay back wages. The department said it had received complaints from at least 30 workers that they had not been paid since December 19 and were owed $306,000 in wages. Jackson was also told he would have to pay about $100,000 in penalties.

Jackson's spokeswoman, Raymone K. Bain, said she "never doubted it would be resolved." Jackson himself does not discuss financial matters because he considers them private, according to Bain.