*Jay Z has avoided legal action over allegations he failed to pay employee insurance for his household staff, after officials agreed the case stemmed from a big misunderstanding.

As previously reported, the rapper was accused by representatives at the Workers Compensation Board of New York of failing to pay premiums for his employees, which include drivers, maids and cooks at his home, for three months in 2009.

A judge ordered the hip-hop star to pay $18,000 in fines for the lapse, and the government agency took action to claim the money earlier this week.

On Thursday, Jigga’s legal team insisted the issue was a misunderstanding, and a spokesman for the board revealed the original court ruling will be made legally void.

The board’s Brian Keegan tells the New York Post, “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.”

No further details were given.