New York Consolidated Laws, Labor Law - LAB § 333. Powers

2. when in the course of inspections pursuant to subdivision one of this section, (a) to inspect books and records of employers with respect to their respective employees concerning the deduction and remittance to the proper authorities of all federal, state and local payroll taxes and to refer to the appropriate authorities any instance in which there is reasonable cause to believe that the payment of federal, state and local payroll taxes is being evaded; and

(b) to take action authorized by this chapter necessary to implement its provisions.