N.Y. Comp. Codes R. & Regs. tit. 12, § 143.4 – Revocation of exemption.

(a) An exemption, elected by a nonprofitmaking institution when it certified under oath to the commissioner to pay to each of its employees in every occupation a wage, exclusive of allowances, of not less than the statutory minimum hourly rate may be revoked by order of the commissioner if he finds:
1. (1) that the certification contained misrepresentations; or
2. (2) that the nonprofitmaking institution has violated the provisions of article 19 applicable to it.
(b) No such order of the commissioner shall be issued unless the nonprofitmaking institution is given an opportunity to be heard by the commissioner. A record will be made of such hearing.