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Asbestos Industries of America, Inc. v. New York State Department of Labor

Citations: 224 A.D.2d 414; 637 N.Y.S.2d 750; 1996 N.Y. App. Div. LEXIS 870

Court: Appellate Division of the Supreme Court of the State of New York; February 4, 1996; New York; State Appellate Court

Narrative Opinion Summary

In a CPLR Article 78 proceeding, the court reviewed a determination by the New York State Department of Labor, which held Asbestos Industries of America, Inc. vicariously liable for a willful violation of Labor Law § 220 by its subcontractor, A. L Environmental Services, Inc. The subcontractor failed to pay prevailing wages and benefits to 57 employees on an asbestos abatement project, resulting in a violation amount of $60,175.86 with a 16% interest and a 25% civil penalty. The court confirmed the Department's decision, finding substantial evidence supporting the findings through testimonies from the investigator and affected employees. The petitioner contested the consolidation of charges from separate contracts into one hearing, but the court dismissed this argument, noting it was not raised during the administrative hearing and upheld the agency's discretion. Other arguments by the petitioner were also found to be without merit. The court's decision was concurred by Judges Mangano, Copertino, Joy, and Altman, leading to the dismissal of the proceeding on the merits and an award of costs against the petitioner.

Legal Issues Addressed

Agency Discretion in Consolidating Hearings

Application: The court upheld the agency's discretion to consolidate charges from separate contracts into one hearing.

Reasoning: The court rejected the petitioner's argument that the charges regarding the East Islip and Lindenhurst contracts should not have been combined in one hearing, noting that this issue was not raised during the administrative hearing.

Imposition of Interest and Civil Penalties

Application: The Department imposed a 16% interest and a 25% civil penalty on the violation amount determined.

Reasoning: The Department fixed the total violation amount at $60,175.86, with an additional 16% interest and a civil penalty of 25%.

Prevailing Wage Requirements under Labor Law § 220

Application: The case involved a failure to pay prevailing wages and benefits as required by Labor Law § 220.

Reasoning: The violation, committed by its subcontractor A. L Environmental Services, Inc., involved failing to pay prevailing wages and benefits to 57 employees engaged in an asbestos abatement project for the East Islip Union Free School District.

Substantial Evidence Standard in Administrative Review

Application: The Department's findings were upheld as they were supported by substantial evidence, including testimonies.

Reasoning: Substantial evidence supported the Department's findings, including testimonies from its investigator and the affected employees.

Vicarious Liability under Labor Law

Application: Asbestos Industries of America, Inc. was found vicariously liable for the willful violation of Labor Law § 220 committed by its subcontractor.

Reasoning: The violation, committed by its subcontractor A. L Environmental Services, Inc., involved failing to pay prevailing wages and benefits to 57 employees engaged in an asbestos abatement project for the East Islip Union Free School District.