Certified payroll compliance is not simple. Between federal Davis-Bacon requirements, state prevailing wage laws, fringe benefit calculations, and apprenticeship rules, even experienced payroll managers run into questions that require research. That research takes time, and getting the answer wrong can be costly.
That is why we built Lydia, a compliance assistant that lives directly inside CertifiedPayrollPro. Lydia is designed to answer your Davis-Bacon and prevailing wage questions in plain English, provide regulatory references, and help you make informed decisions without leaving the platform.
How Lydia Works
Lydia is deeply knowledgeable about federal and state prevailing wage regulations, DOL Wage and Hour Division guidance, Field Operations Handbook sections, and thousands of common compliance scenarios. She is not a search engine that returns links. She synthesizes information and provides direct, actionable answers.
When you ask Lydia a question, she considers the context of your query, including the specific project, state, and wage determination you are working with if you are asking from within a project. She then provides a clear answer along with citations to the relevant regulatory source so you can verify the information independently.
It is important to note what Lydia is and what she is not. Lydia is a knowledgeable assistant that can help you understand regulations and identify potential compliance issues. She is not a substitute for legal counsel. For complex disputes or formal DOL inquiries, you should always consult with an attorney who specializes in construction labor law.
Example Conversations
Here are some real examples of the types of questions Lydia handles every day:
Fringe Benefit Questions
User: "Can I pay fringe benefits in cash instead of providing health insurance?"
Lydia: "Yes. Under Davis-Bacon, you can meet the fringe benefit obligation by paying the fringe amount directly to the employee as cash wages, by making bona fide contributions to an approved benefit plan, or through a combination of both. The total compensation (base hourly rate plus fringe, whether in cash or benefits) must meet or exceed the prevailing wage rate listed in the applicable wage determination. Reference: 29 CFR 5.32."
Apprenticeship Rules
User: "I have an apprentice electrician on a federal project. What rate do I pay?"
Lydia: "Apprentices on Davis-Bacon projects must be employed under a registered apprenticeship program approved by the DOL Office of Apprenticeship or a recognized State Apprenticeship Agency. The apprentice should be paid the percentage of the journeyman rate specified in their apprenticeship agreement. For example, if the wage determination lists the journeyman electrician rate at $45.00/hr and the apprentice is at the 60% step, the minimum rate would be $27.00/hr. You must maintain documentation of the apprentice's registration. Reference: 29 CFR 5.5(a)(4)."
Multi-Project Scenarios
User: "An employee worked 20 hours on a Davis-Bacon project and 25 hours on a private project this week. How do I handle overtime?"
Lydia: "The employee worked 45 total hours, so 5 hours of overtime must be allocated. Under the DOL's guidance, overtime should be applied proportionally or to the project where the overtime hours were actually worked, depending on your state's rules and the specifics of the situation. For the Davis-Bacon project hours, you must pay at least the prevailing wage rate. For the overtime hours attributable to the Davis-Bacon project, you must pay at least 1.5 times the regular rate under the Contract Work Hours and Safety Standards Act (CWHSSA). I recommend documenting the allocation method you use. Reference: 29 CFR 5.5(b)(1)."
How Technology Is Changing Compliance
The construction industry has traditionally been slower to adopt new technology than other sectors. But modern compliance tools are changing the landscape in ways that benefit contractors of all sizes.
Before tools like Lydia, a payroll manager faced with a complex compliance question had three options: spend an hour or more researching DOL guidance documents, call an attorney at several hundred dollars per hour, or make their best guess and hope for the best. None of these options are great, especially for small and mid-size contractors who deal with compliance questions weekly but cannot justify a full-time compliance officer.
Built-in compliance assistants do not replace expertise. They democratize access to it. A five-person framing contractor now has access to the same regulatory knowledge that was previously available only to large firms with dedicated compliance departments. That levels the playing field and, more importantly, it improves compliance across the industry.
Privacy and Accuracy
We take data privacy seriously. Lydia processes your questions within the CertifiedPayrollPro platform and does not share your project data, employee information, or payroll details with third parties. Your conversations with Lydia are private to your account.
Regarding accuracy, Lydia is continuously improved based on regulatory updates and user feedback. When the DOL publishes new guidance or updates the Field Operations Handbook, we update Lydia's knowledge base. We recommend verifying critical decisions through the regulatory citations Lydia provides. That is why every answer includes a reference: trust, but verify.
Getting Started with Lydia
Lydia is available to all CertifiedPayrollPro subscribers. You can access her from any screen in the application by clicking the assistant icon. She is also available in the mobile experience, so you can ask questions from the job site.
If you are not yet a CertifiedPayrollPro user, Lydia is available during the free trial period so you can experience guided compliance before committing. We think once you try asking Lydia a question instead of digging through PDFs, you will not want to go back.
