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.
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.
| Actual punch | Rounded punch | Change |
|---|---|---|
| 8:01 AM | 8:00 AM | −1 minute |
| 8:07 AM | 8:00 AM | −7 minutes |
| 8:08 AM | 8:15 AM | +7 minutes |
| 8:14 AM | 8:15 AM | +1 minute |
| 8:15 AM | 8:15 AM | No change |
03Rounding must work in both directions
Punches can move backward or forward according to the same midpoint rule.
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.
This guide explains the federal regulation; it does not determine whether a specific policy, dataset or state practice is lawful.
Compare exact and rounded punches
The weekly calculator defaults to exact time and offers explicit 5-, 6-, 10- and 15-minute 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.