Jackson to pay Neverland workers

Pop star Michael Jackson has agreed to pay back wages to employees at his Neverland ranch, California officials announced Wednesday.

By making the arrangements to pay 69 employees at the central California ranch, which is home to the reclusive pop star's collection of exotic animals, Jackson avoided legal action from the state.

Representatives for the entertainer said the unpaid wages would be distributed by Thursday, the California Department of Industrial Relations said.

Last week, state authorities shut down the ranch because Jackson had allowed his workers' compensation insurance to lapse.

The state fined Jackson $100,000 US and threatened to sue him after investigating claims that Neverland employees were owed more than $300,000 US in pay for work dating back to December 2005. The singer was initially given a Tuesday deadline, which was later extended to Wednesday.

State officials said Neverland would remain closed until Jackson obtains the proper insurance, which his representatives are currently working on.

Jackson and his family can still live at the ranch, but may only employ people there who are covered by workers' compensation insurance, an industrial relations spokesperson said last week.

A local veterinarian has taken over supervision of the animals living at the Neverland zoo. 

Jackson has spent most of his time in the Persian Gulf country of Bahrain since his acquittal last June on sexual abuse charges.

During the trial, prosecutors had said the pop singer was dealing with mounting debts and financial problems.