If the party or parties against whom the charge is brought fails to file an answer in the manner and within the time herein provided, it may be limited to crossexamination of witnesses called by the charging party and shall have such other rights as the hearing officer may deem proper. Where prejudice to the charging party is demonstrated or no sufficient excuse or justification for the failure to file is proffered, the hearing officer may deem such failure to constitute an admission of the material facts alleged in the charge and a waiver by the respondent of a hearing.
N.Y. Comp. Codes R. & Regs. Tit. 12 § 252.11