Final answer:
Lyddie was paid by the piece rate, which means her pay was determined by the amount of cloth she produced, reflecting her work proficiency.
Step-by-step explanation:
The quote "The pay reflected her proficiency... While the other girls grumbled that their piece rates had dropped so that it had hardly been worth slaving through the summer heat, she kept her silence" shows that Lyddie was paid according to the amount of cloth she wove, as indicated by the reference to 'piece rates,' which means her compensation was tied directly to her productivity rather than an hourly wage or duration of employment. The other girls' dissatisfaction underlines the system's performance-based payment structure and suggests that Lyddie's earnings were a result of her high proficiency, not because of preferential treatment by the overseer or her tenure in the job, and definitely not indicative of a payment decrease as read in the tavern context.