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Payroll guide · US

The 7-minute rule for time clock rounding: chart and examples

By Sushil Kumar · Published September 29, 2026 · 6 min read

The 7-minute rule: time clock rounding to the nearest 15 minutes
Short answer: The 7-minute rule rounds each punch to the nearest quarter hour. 1 to 7 minutes past the quarter round down; 8 to 14 minutes round up. Federal rules allow it (29 CFR 785.48(b)) only if it is neutral over time, so employees are paid for all the time they actually work.

What is the 7-minute rule?

It's the common name for quarter-hour rounding. Each clock-in and clock-out moves to the nearest :00, :15, :30 or :45. Seven minutes is the halfway point of a 15-minute block, which is where the name comes from.

The rule is not written in the law as "7 minutes". The law only allows rounding to the nearest 5 minutes, tenth of an hour or quarter hour. The 7-minute cut-off is simply how "nearest quarter hour" works.

7-minute rule chart

Minutes past the last quarter hour, what they round to, and the decimal hours for payroll.

Minutes past the quarterRoundsExample punchRounded
0None9:009:00
1–7Down9:01 to 9:079:00
8–14Up9:08 to 9:149:15
15None9:159:15
16–22Down9:16 to 9:229:15
23–29Up9:23 to 9:299:30
31–37Down9:31 to 9:379:30
38–44Up9:38 to 9:449:45
46–52Down9:46 to 9:529:45
53–59Up9:53 to 9:5910:00

Quarter hours in decimal: :15 = 0.25, :30 = 0.50, :45 = 0.75. So 8 hours 45 minutes is 8.75 hours on the pay slip.

Yes under federal law, if it's neutral. The Department of Labor accepts rounding to the nearest 5 minutes, tenth or quarter hour, as long as over time it doesn't fail to pay employees for time they actually worked (29 CFR 785.48(b)).

In practice "neutral" means:

Some states are stricter, and California is still debating it (see below). If you're unsure, paying to the exact minute is always allowed.

Worked example: one week of rounded punches

Employee paid $20/hour, 30-minute unpaid lunch each day

DayPunchesRoundedActualRoundedDiff
Mon7:56–5:068:00–5:008:408:30−10 min
Tue8:09–4:588:15–5:008:198:15−4 min
Wed8:03–5:118:00–5:158:388:45+7 min
Thu7:52–5:027:45–5:008:408:45+5 min
Fri8:06–5:098:00–5:158:338:45+12 min
Week42:5043:00+10 min

Rounding took time off on Monday and Tuesday and added time on the other days. This week it favored the employee by 10 minutes. That back-and-forth is what a neutral policy looks like.

Pay on rounded time: 40 × $20 + 3 × $30 = $890.00.
Pay to the minute: 40 × $20 + 2.83 × $30 = $885.00.

Note that rounding comes first, then overtime. The rounded weekly total decides how many hours pass 40.

Try it with your own punches

Our free time card calculator rounds each punch to the nearest 5, 6 or 15 minutes, then works out weekly overtime. No login.

Open the time card calculator

When rounding becomes illegal

The same five days as above, but with a one-way policy: clock-ins always round up and clock-outs always round down.

PolicyHours paidPay
Paid to the minute42:50$885.00
7-minute rule (nearest)43:00$890.00
One-way rounding41:30$845.00

One-way rounding cuts 80 minutes and $40 from one week. Over a year that's about $2,080 per employee in unpaid wages, the kind of pattern wage claims are built on.

Other common problems:

  1. Rounding in one direction only, like the example above.
  2. Letting people start work before the rounded time, then rounding the punch forward. If they're working, that time counts.
  3. Disciplining employees for punching 1 to 7 minutes late while never paying for 1 to 7 minutes early. That breaks neutrality in practice.
  4. Rounding meal breaks in California (see below).
  5. Never checking the results. Compare rounded and actual hours every few months. If the gap always favors the business, change the policy.

5-minute and 6-minute rounding

The same law allows two smaller increments. They're closer to real time, so they are lower risk.

RuleRounds downRounds upMax change per punch
5-minute (nearest 5)1–2 min3–4 min2 min
6-minute (tenth of an hour)1–2 min3–5 min3 min
7-minute rule (quarter hour)1–7 min8–14 min7 min

Tenth-hour rounding is popular because each 6-minute block is exactly 0.1 hour, so the payroll maths is easy (8:42 worked time = 8.7 hours).

California rules

For California employees, the safest option today is to pay to the exact minute.

Frequently asked questions

What is the 7-minute rule for clocking in?

It rounds punches to the nearest quarter hour. 1 to 7 minutes past rounds down, and 8 to 14 minutes rounds up to the next quarter.

Is the 7-minute rule legal?

Yes under federal law, if it's applied neutrally and employees are paid for all time worked over time. Some states, especially California, are stricter.

If I clock in 7 minutes late, am I paid for it?

Under quarter-hour rounding, a punch 7 minutes late rounds back to the quarter hour, so you'd be paid from the scheduled time. 8 minutes late rounds up to the next quarter.

Does the 7-minute rule apply to lunch breaks?

Federal rules don't ban it if neutral. In California, the Supreme Court held in 2021 that meal-period punches can't be rounded.

Do I have to round time at all?

No. Rounding is optional. Paying to the exact minute is always allowed and avoids neutrality disputes.

Sushil Kumar is the founder of LENSO Web Design. He has built websites and business systems since 2016, including an attendance and payroll engine that handles shift patterns, overtime, leave and rounding rules. Need an attendance system built to your rules?

Related

Sources

This guide is general information, not legal advice. Rounding rules can differ by state and by court decisions. Check the US Department of Labor and your state labor office, or ask an employment lawyer, before setting a rounding policy.