QUICK ANSWER

Federal regulation recognizes rounding to the nearest 5 minutes, one-tenth of an hour or quarter hour when the practice, over time, does not result in failing to pay employees for all time actually worked. Rounding is permitted—not required.

01What 29 CFR § 785.48 says

The regulation distinguishes clock records from actual work and acknowledges longstanding rounding practices. Its condition is outcome-focused: over time, the method must not produce a failure to compensate employees properly for all time actually worked.

PERMITTED INTERVALS5 min · 6 min · 15 min
ESSENTIAL TESTNo systematic loss of paid work time

02The “7-minute rule” example

The phrase “7-minute rule” commonly describes nearest-quarter-hour rounding. It is not a separate statutory entitlement. In a neutral quarter-hour example, minutes 1–7 round back to the prior quarter and minutes 8–14 round forward to the next quarter.

Illustrative nearest-quarter-hour rounding around 8:00 AM
Actual punchRounded punchChange
8:01 AM8:00 AM−1 minute
8:07 AM8:00 AM−7 minutes
8:08 AM8:15 AM+7 minutes
8:14 AM8:15 AM+1 minute
8:15 AM8:15 AMNo change

03Rounding must work in both directions

NEUTRAL PATTERNNearest interval

Punches can move backward or forward according to the same midpoint rule.

RED FLAGAlways favors the employer

Clock-ins always move later while clock-outs always move earlier.

A policy that appears neutral on paper still must be assessed by how it operates over time. Major differences between recorded and actual work also raise accuracy concerns.

04Conversion is not rounding

Turning 8 hours 8 minutes into 8.13 decimal hours preserves the duration; it is a format conversion. Rounding an 8:08 punch to 8:15 changes the recorded punch. Use the minutes-to-decimal chart for conversion and apply a rounding setting only when a relevant policy calls for it.

05Exact time is a valid option

Federal law does not require a time clock or a rounded record. Employers may record exact minutes as long as the records are complete and accurate. State law may impose additional limits, so a federal example is not a universal compliance answer.

Important limitation

This guide explains the federal regulation; it does not determine whether a specific policy, dataset or state practice is lawful.

TEST THE MATH

Compare exact and rounded punches

The weekly calculator defaults to exact time and offers explicit 5-, 6-, 10- and 15-minute settings.

Open Rounding Settings

Common questions

Does federal law require the 7-minute rule?

No. The regulation permits certain neutral rounding practices; it does not require employers to round.

Can an employer always round down?

A practice that systematically removes worked time would conflict with the federal condition that employees be properly compensated over time.

Can a company track exact minutes instead?

Yes. Exact recording is compatible with the federal recordkeeping framework.