UPDATE: Jay-Z Dusts Off $18K Workers Comp Accusations, "There's Never Been A Missed Payment"

A day after Jay-Z made headlines for getting sued over $18,000 by the Workers Compensation Board of New York, a spokesperson claims the matter is currently being handled. 

 

If all goes accordingly, Jay will be in the clear and not have to worry about dishing out money.

"After consulting with the employer's insurer, the board expects this matter to be resolved in the next few days, resulting in the judgment being vacated," said Brian Keegan, a spokesman for the New York State's Workers' Compensation Board. The state had previously claimed Shawn Carter, 42 -- Jay-Z's birth name -- failed to pay insurance from Sept. 30, 2009, to Dec. 30, 2009, for staff at 195 Hudson St. The complaint was filed in March, and the board secured a Supreme Court judgment on Nov. 22. Jay-Z's reps chalked up the judgment to a paperwork foul-up. "There's never been a missed payment," said a Jay-Z confidant. (New York Post)

Details of the original suit hit the Internet Thursday (December 29).

According to the suit, obtained by TMZ, Jay-Z failed to pay workers' compensation insurance for three months in 2009 -- and sources close to the situation tell us, the insurance was supposed to cover domestic employees in Jay-Z's house ... cooks, maids, drivers ... that sort of thing. The government agency sued the rapper to collect $18, 000 in fines for the transgression -- and a court has since ordered Jay to pay up. According to the docs, it was only a momentary lapse -- after the three-month period in 2009, Jay-Z acquired the right insurance and the problem was resolved ... with the exception of the outstanding $18, 000 owed. (TMZ)

Despite the headline-garnering suit, Hov's camp claimed the rapper had done no wrong.

But according to a source close to the rapper, he never missed a payment -- the claim arose from an administrative error that was being resolved. Most US employers are required to supply workers' compensation insurance, which provides wage replacement and medical benefits to employees injured in the course of their work. (MyFox News)

A few years ago, Jay caught heat for allegedly neglecting to issue compensation to a few workers employed at his 40/40 Club.

In July of 2008, Judge Preska ruled that the club owners violated New York labor laws after reviewing the earning reports for various employees, who showed they were not paid for working over time. Almost 400 employees could be eligible to collect money should the 40/40 club eventually lose the lawsuit. (Examiner)