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Definition of Governing Classification

Governing classification is the workers' compensation classification that applies to the majority of an employer's payroll other than one of the standard exception classes. It is the classification that usually identifies the kind of work that is done by the employer. It is the governing classification that is used to determine how certain employees of the business are classified. Miscellaneous employees and certain managers are placed in the governing classification. Others who will be in the classification include executive officers who regularly do the duties of a foreman, worker, manager or superintendent.

However, it is important to remember that it is the kind of work that an employer does that is placed in a governing classification. It is not the separate jobs or occupations of individual employees within the business that determine the governing classification. When the governing classification is properly applied, it represents the normal activities that are carried on in the type of work that an employer does. The significance of the governing classification for your employer is that the greater the risk is for an employee being injured or developing an occupational illness due to the nature of the work that your employer does or the working conditions in the work, the higher your employer's workers' compensation insurance premiums will be.

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