State officials have fined Michael Jackson $69,000 and told him he cannot employ 69 workers at his Neverland Ranch because their workers' compensation policy expired in January, an official said.

Dean Fryer, spokesman for the California Department of Industrial Relations, said the agency had issued a stop order preventing the use of any employee labor “until they have obtained workers' compensation insurance.”

He said the policy lapsed Jan. 10, and the department had become involved because many of the ranch employees had contacted DIR complaining about unpaid wages that had not been forthcoming come since December.

“One employee made a comment that there was no [workers'] compensation insurance, and he was concerned because he had heard an employee had an injury,” prompting an investigation, according to Mr. Fryer. He said the fine was $1,000 per worker based on the last 2005 payroll tax report to the state.

“We're working with representatives of Mr. Jackson. We were told yesterday those representatives told employees they can't continue working until they sort this out. We will follow up. If we identify employees still actively working, we can proceed with other avenues,” said Mr. Fryer

These other “avenues,” he explained, include obtaining a civil injunction or referring the case to the district attorney's office to bring criminal charges.

Mr. Jackson has lived in the Persian Gulf nation of Bahrain since being acquitted of child molestation charges last year.

The sprawling, landscaped 2,600-acre Neverland ranch contains amusement park rides and has housed a variety of zoo animals, including elephants and tigers.

Mr. Fryer said the department notified local animal welfare agencies of the employee shutdown so they could make arrangements to feed and care for the animals.

Ranch operators have five days to appeal the order and fine, Mr. Fryer said.

The department has also sent a letter to Mr. Jackson's accounting firm, asking his business managers to pay $306,000 in back wages.

Special Reports /

Michael Jackson Hit With Comp Fine

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