John Schepanski Roofing & Gutters v. Roberts
The petitioners, John Schepanski Roofing & Gutters (Schepanski) and Prestige Roofing & Siding Co. (Prestige), sought judicial review of an order from the Commissioner of Labor of the State of New York, dated November 13, 1986. The original order found Schepanski willfully failed to pay prevailing wages and supplements to 19 employees during a roofing project at Suffolk County public schools, resulting in $282,240.46 in underpayments, and assessed a civil penalty of $35,000. Prestige was also held liable for its subcontractor's (Schepanski's) failure. The court granted the petitions and annulled the Commissioner's order, remitting the matter for further proceedings. While acknowledging substantial evidence for willful non-payment and improper record-keeping, the court determined that the respondent's method for calculating underpaid wages and supplements lacked a rational basis. Specifically, the respondent failed to credit Schepanski for some payments made, used an incorrect last day of work, and made an irrational inference about the number of workers present. As a result, the assessed civil penalty must also be reconsidered.