CHAP AI™

Your compliance intelligence layer.
Every exception explained. Every determination documented.

CHAP AI analyzes payroll scenarios against federal and state regulations, surfaces exceptions with statute citations, and produces audit-ready determinations — with a human approver on every decision before payroll closes.

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Demo EnvironmentCompliance Model: Production Logic128h to cutoff

CHAP AI

Good morning. Here's your current compliance snapshot:

• 3 open exceptions require attention before the next cutoff
• 5 active jurisdictions: CA, NY, TX, WA, FL
• Compliance score: 94% (up 3% from last period)
• 128 hours to payroll cutoff

What would you like to review?

Four steps. Every payroll cycle.

CHAP AI runs the full Detect → Flag → Explain → Document cycle continuously — surfacing exceptions before payroll closes.

Detect

Monitors payroll data against statutory requirements

CHAP AI continuously monitors payroll data against the applicable federal and state statutory ruleset for your employee population — surfacing exceptions as they emerge, not after payroll commits.

Flag

Surfaces exceptions with severity and statute

Every exception is classified by severity (blocks payroll vs advisory), assigned the specific regulation that triggered it (FLSA §207, CA Lab §512, IWC Order 4), and queued for human review before the payroll run closes.

Explain

Plain-language rationale, not just error codes

CHAP AI generates a human-readable explanation for every flag: what rule was violated, why the specific employee's record triggered it, what correction clears it, and what the exposure would have been if it ran.

Document

Audit-ready evidence generated automatically

Every review cycle produces a timestamped compliance record: what was checked, what passed, what was flagged, what was corrected, and by whom. Three years of records, searchable on demand.

Inside the platform

See what CHAP AI surfaces.

Live screenshots from the PSE compliance platform — the same interface your payroll team uses every cycle.

PSE dashboard showing compliance status across all active states — Dashboard — compliance status at a glance

CHAP AI pre-run compliance scan results with statute citations — Pre-run scan — violations flagged before payroll commits

Payroll run validation showing per-employee compliance checks — Run validation — per-employee statutory checks

Audit trail showing timestamped compliance records — Audit trail — every decision documented

Coverage

What CHAP AI checks.

Federal statutory checks applied continuously. State-specific rules applied per employee jurisdiction.

Federal

FLSA §206Federal minimum wage

FLSA §207Overtime (1.5x after 40hrs)

IRC §6656Deposit timing & amount

IRC §6721Information return accuracy

IRC §6722Payee statement compliance

FMLA §825Leave designation accuracy

ACA §4980HEmployer mandate compliance

State

Min wage (tiered)Meal & rest breaksSplit-shift premiumSick leave accrualPay stub requirements

Wage noticeSpread of hoursMin wage (locality)Paid family leave

Min wage (2026 rate)Paid sick leaveLong-term care

+45

Additional states monitored — ask about coverage

Daily monitoring

Regulatory changes reflected within one business day.

Federal, state, and local regulatory changes are monitored daily. When a rule changes, CHAP AI updates — your team doesn't have to.

📡

Federal & State Monitoring

DOL, IRS, and state labor agency publications scanned daily. Rate changes, new requirements, and enforcement guidance reflected in CHAP AI rules within one business day.

⚡

Same-Day Rule Updates

When a minimum wage changes or a new leave mandate takes effect, the applicable CHAP AI rules update before your next payroll run — not on a quarterly release cycle.

📋

Change Documentation

Every rule update is logged with the source regulation, effective date, and the specific CHAP AI check it modifies — creating an audit trail of your compliance posture over time.

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Proactive Alerts

When a regulatory change impacts your active employee population, CHAP AI flags it before your next payroll cycle — not after a violation occurs.

chap-ai — regulatory update log

2026-03-14 ✓ APPLIED CA SB-1234 min wage → $16.50/hr eff 2026-04-01

2026-03-13 ✓ APPLIED IRS Rev. Proc. 2026-12 deposit threshold update

2026-03-12 ⚠ ALERT NY WARN Act amendment — 10-day notice for your 3 NY locations

2026-03-11 ✓ APPLIED WA PFML rate update → 0.74% eff Q2-2026

2026-03-10 ✓ APPLIED FLSA overtime threshold guidance (WHD Field Bulletin)

Early Access

CHAP Guard — Compliance in your payroll system

CHAP Guard is a Chrome extension that brings CHAP AI compliance intelligence directly into UKG, ADP, and other payroll platforms — surfacing inline violation indicators and statute context without leaving your existing workflow. Early access available for qualifying PSE clients.

UKGADPDayforceMore coming

Request Access

Industry data

The compliance exposure CHAP AI addresses.

1 in 3

employers has an active payroll error in any given period

Source: IRS employer compliance study + EY Payroll Operations Survey, 2024

$150M

recovered by DOL WHD in FY2024 — $127M from overtime violations alone

Source: DOL WHD FY2024 Statistical Release

120 hrs

lost per employer annually to compliance issue resolution

Source: Ernst & Young Global Payroll Operations Survey, 2024

See CHAP AI analyze your payroll compliance posture.

30-minute personalized walkthrough. Bring your last payroll file.

Request a Demo

Your compliance intelligence layer.Every exception explained. Every determination documented.