Time Clock Rounding Rules and the 7-Minute Rule

Last updated · By the DropFlick team

Many employers round clock-in and clock-out times to a set increment, such as the nearest 15 minutes. Here is how the common rounding rules work and how they change your totals.

The common increments

IncrementRounds toExample: punch at 8:53
5 minutes:00, :05, :10 …8:55
6 minutes (tenth of an hour):00, :06, :12 …8:54
10 minutes:00, :10, :20 …8:50
15 minutes (quarter hour):00, :15, :30, :459:00

The 7-minute rule

The “7-minute rule” is quarter-hour rounding to the nearest 15 minutes. If a punch is 1–7 minutes past a quarter hour, it rounds down; if it's 8–14 minutes past, it rounds up.

Is rounding allowed?

In the United States, the Department of Labor's regulations accept rounding to the nearest 5 minutes, tenth of an hour or quarter hour, as long as it averages out so employees are fully paid for the time they actually work over a period (29 CFR 785.48). A policy that always rounds in the employer's favour is not neutral. Some states and courts are stricter, and other countries have their own rules, so check locally.

How rounding changes a week

Example punches with 15-minute nearest rounding:

DayActualRoundedActual hoursRounded hours
Mon8:53 – 17:049:00 – 17:008:118:00
Tue9:06 – 17:099:00 – 17:158:038:15
Wed8:58 – 17:219:00 – 17:158:238:15

Over these three days, actual time is 24:37 and rounded time is 24:30. Over a long period, neutral rounding should roughly even out. To compare both for your own card, run it through the time card calculator once with “No rounding” and once with your employer's rule.