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New Jersey Department of Labor v. Pepsi-Cola Company

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Argued October 10, 2001

We affirm the judgment of the Appellate Division allowing the Commissioner of Labor to award prejudgment interest against Pepsi-Cola Company in order to make whole the claimants who were underpaid for overtime hours worked. We do so substantially for the reasons stated in the thorough and thoughtful opinion of Judge King. New Jersey Dep’t of Labor v. Pepsi-Cola, 336 N.J. Super. 532 (App. Div. 2001).

We reaffirm, however, that the right of the Commissioner to award prejudgment interest can arise only from his express and implied powers granted by the Legislature in enabling legislation, and not from any non-statutory ability to exercise equitable powers. Administrative agencies, including administrative officers, are creatures of legislation. In Re Regulation F-22, Office of Milk Indus., 32 N.J. 258, 261-62 (1960). Their powers are limited to those expressly granted by statute or those fairly implied as necessary to carry out their assigned function. Ibid; Cammarata v. Essex County Park Comm’n, 26 N.J. 404, 411 (1958) (“The grant of an express power is always attended by the incidental authority fairly and reasonably necessary or appropriate to make it effective. . . . Authority delegated to an administrative agency should be construed so as to permit the fullest accomplishment of the legislative intent.” (citations omitted)). However, inherent or implied power is not boundless. Playmate Toys, Inc. v. Director, Div. of Taxation, 162 N.J. 186, 187 (1999).

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