The Human Side of Prevailing Wage & Workforce Compliance: Make It Easier for Subs and You’ll Get Better Data
By Joseph Leiva, P.E., Co-Founder and CEO of Kaster
In recent years, much of the conversation around construction compliance has centered on automation and artificial intelligence. Rightfully so. These tools are powerful. They can streamline workflows, reduce manual effort, and scale operations in ways that were not possible even a few years ago.
But there is a critical piece missing from that conversation. Technology does not replace competence. It amplifies it. And when the human side of compliance is weak or absent, no amount of software, automation, or AI can compensate.
According to U.S. Department of Labor WHD compliance action data, findings from early 2005 through October 2025 show more than 169,000 Davis Bacon and Related Acts (DBRA) prevailing wage violations. That number is significant, but it understates the true scope of the issue. As agencies and 3rd-parties continue to work through construction project certified payroll reporting backlogs and increase enforcement activity, more violations will surely surface.
Noncompliance exists. The real question is why. And the answer is often misunderstood. Even more concerning, it’s not taken as seriously as it should be. Too often, the mindset becomes, “We’ll deal with it if something happens,” rather than addressing the root of the issue upfront.
Most prevailing wage violations aren’t coming from bad intent. They come from confusion. From not fully understanding the rules. From a lack of oversight. At the end of the day, it’s human. It’s people trying to figure it out as they go. And a lot of the time… it’s just complacency.
Compliance Problems Start With People, Not Software
Automation and AI are often positioned as the sole fix. And they are part of it. But they are not a substitute for experience, responsibility, and communication. Without proper setup and clearly defined project rules, the guardrails aren’t where they need to be. And when that happens, technology doesn’t prevent mistakes, it allows things to go off track.
The companies that consistently succeed in prevailing wage compliance are not just those with the best tools. They are the ones that have people who understand the rules deeply as well. They know how to interpret wage determinations. They understand how base wages, fringes, and overtime interact. They are equipped for handling edge cases and nuances. They verify their interpretations with the appropriate agencies. And most importantly, they educate their subcontractors before work begins and reinforce that understanding throughout the life of the project.
Technology, in these cases, acts as a force multiplier. It reinforces guardrails, in the right places. It maintains consistency. It scales good, responsible, compliant practices across projects and teams.
That’s what a solid foundation looks like: human expertise, reinforced by technology built on deep domain expertise.
When Compliance Systems Scale Faster Than Expertise
The inverse is where problems begin.
In my experience, when the human side of compliance is absent or underdeveloped, even the best systems fall short. Software can calculate, validate, and flag issues, but it cannot explain the “why” behind the rules. It cannot train subcontractors. It cannot enforce discipline when teams are unsure of how to interpret requirements. Without knowledgeable people guiding the process, the system becomes reactive rather than proactive.
This dynamic becomes especially apparent on projects where companies attempt to manage prevailing wage compliance without the proper foundation.
A common scenario unfolds like this: a contractor takes on a prevailing wage project, often for the first time. They recognize the requirements but underestimate the complexity. Instead of investing in the right combination of expertise and tools, they attempt to manage the process internally, sometimes adapting existing systems or relying on spreadsheets and manual workflows.
At first, it appears to work. The pace is manageable. Only a handful of subcontractors are mobilized. Weekly certified payroll issues are addressed as they arise. The process feels under control. This creates a false signal that the approach is sufficient.
Then the foundational cracks emerge.
At around the six-month mark, activity increases. More subcontractors. The number of weekly certified payroll submissions skyrockets. This is the inflection point.
Volume, complexity, and risk begin to compound. Systemic issues spread. Backlogs get longer. Misinterpretations and rework multiply. The process becomes reactive, with teams bogged down fixing problems.
At this stage, companies often pull in additional internal resources to stabilize the situation. But more people do not necessarily solve the problem if those resources lack the specialized knowledge required. And even when the right expertise is present, the scale of the operation demands tools that can support consistency and visibility across the entire project.
The consequences are real. Payment cycles slow down. Project teams waste time making corrections. Relationships with owners are strained. And when audits occur, wage restitution, interest, and penalties become a problem.
Workforce Compliance Adds Another Layer of Complexity
The situation becomes even more complex when workforce compliance requirements are layered on top of certified payrolls.
Workforce compliance introduces additional dimensions: apprenticeship tracking, Section 3 reporting, OSHA 10 certification requirements, local hire initiatives, and demographic workforce goals. Each of these carries its own rules, documentation requirements, and reporting timelines.
Now, it is about managing a comprehensive dataset across multiple dimensions of compliance.
This is where the human side of compliance becomes most critical.
Better data does not start with better systems. It starts with making the process easier for the people responsible for executing it.
Subcontractors are at the front line of compliance. They are the ones entering data, interpreting requirements, and submitting weekly reports. If the process is unclear, inconsistent, or overly burdensome, errors and missing submissions are inevitable.
We assume that subcontractors should “just get it right,” even when the rules are complex and the guidance is limited. We design processes that prioritize enforcement over usability, and then we are surprised when the data quality falls short.
The reality is simple: if compliance is difficult and cumbersome, it will be done incorrectly.
Improving outcomes requires a shift in approach. Clarity must come before enforcement, with expectations defined early and reinforced consistently. Continuous education and structured workflows with built-in validation should guide subcontractors toward correct outcomes and eliminate errors.
Technology plays a critical role in enabling these improvements. It can provide structure, enforce rules, and surface issues early. But its effectiveness depends entirely on the quality of the inputs and the understanding of the people using it.
The path forward is not to choose between human expertise and technology. It is to recognize that success requires both.
Compliance, at its core, is a human system supported by technology. When we design it with that in mind, the results follow.
Make it easier for subcontractors to do the right thing, and better data will follow.
Joseph Leiva, P.E., is the Co-Founder and CEO of Kaster, a construction-technology company built to modernize certified payroll and subcontractor compliance workflows for public works projects. A former Maryland-based MBE and DBE subcontractor who spent more than 15 years delivering heavy civil infrastructure work for firms such as Skanska, Walsh, Dragados, LANE, and Clark, Leiva now focuses on solving the prevailing wage reporting and documentation challenges that slow down today’s public projects. Known for a practical, user-informed approach to technology, he works closely with subcontractors, prime contractors, owners, developers, and public agencies to streamline subcontractor compliance, weekly certified payrolls, and workforce reporting.