Governing classification

The governing classification is the class code that best describes a business's principal operation, and the one that carries the most payroll aside from standard exceptions.

Most policies carry several class codes, but one describes the core business. Standard exception classes — typically clerical and outside sales roles, where the rules permit them to be separated — sit outside it.

When an employee's duties cannot be cleanly separated, or when the records to support a separation don't exist, payroll generally falls to the governing classification or to the highest-rated code the person worked in.

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