The short answer
Federal law allows employers to round punch times to the nearest 5 minutes, tenth of an hour or quarter hour (29 CFR §785.48). The condition is that rounding must be neutral: over a period of time it has to average out so employees are paid for all the time they actually worked. Rounding that consistently favours the employer is not allowed.
How the 7-minute rule works
The 7-minute rule is the everyday name for rounding to the nearest quarter hour. Within each 15-minute block:
- 1 to 7 minutes past the quarter rounds down
- 8 to 14 minutes past the quarter rounds up to the next quarter
| Actual punch | Rounded to | Effect |
|---|---|---|
| 8:52 | 8:45 | Clock-in rounds earlier — 7 minutes in your favour |
| 8:53 | 9:00 | Clock-in rounds later — 7 minutes against you |
| 5:07 | 5:00 | Clock-out rounds earlier — 7 minutes against you |
| 5:08 | 5:15 | Clock-out rounds later — 7 minutes in your favour |
Tenth-hour rounding works the same way in 6-minute blocks. The minutes to decimal chart shows how those tenths line up with payroll hours.
When rounding becomes illegal
Individual days will round against you under a perfectly lawful policy. What matters is the pattern. These are the red flags:
- One-directional rules. Clock-ins always rounded forward and clock-outs always rounded back, so rounding can only ever cut time.
- Rounding that ignores real work. If you clock in at 8:53 and start working straight away, those 7 minutes are working time. Rounding them away every day is a problem, even under a nominally neutral rule.
- Schedules that make rounding lopsided. For example, a policy that stops you clocking in until 8:53 but lets you clock out at 5:00 on the dot means rounding in practice only ever works one way.
- A consistent net loss. Over several weeks, your rounded paid hours are regularly lower than your actual punched hours.
Early clock-ins are a separate question
If you clock in early and do no work until your shift starts — you are chatting or having a coffee — your employer can disregard that time (29 CFR §785.48(a)). If you start working, it is hours worked and must be paid, whatever the rounding policy says. Small amounts of time that cannot practically be recorded may be ignored (29 CFR §785.47), but not regular, predictable minutes of work.
California is stricter
California courts have generally accepted neutral rounding, but have narrowed it:
- No rounding of meal breaks. In Donohue v. AMN Services (2021), the California Supreme Court held that employers cannot round meal-period punches, and that records showing short or late meal breaks create a presumption of a violation.
- Rounding when exact times exist. In Camp v. Home Depot (2022), a Court of Appeal held that an employer that can and does record exact punch times must pay for all of that time. The question has since been under review, so check the current position before relying on rounding in California.
See California overtime rules for how rounded hours then feed into daily overtime.
How to check your own rounding
- Record your real punch times for two or three weeks. The time clock on this site keeps an exact log on your device.
- Enter them into the rounding calculator with your employer's rule. It shows the net minutes gained or lost and which way it leans.
- Compare against your pay stubs. If the net is consistently against you, raise it with payroll or HR — misconfigured timekeeping systems are common. If it continues, your state labor department or the federal Wage and Hour Division can take a complaint.
This guide explains the general rules on rounding. It is not legal advice, and it cannot account for your employer's full policy or your state's specific case law.
Common questions
Is the 7-minute rule a law?
Not as such. It is the common name for quarter-hour rounding, which federal regulations permit as long as it is neutral over time. Nothing requires an employer to round at all.
Can my employer always round my clock-in time up?
Not if the effect is that you consistently lose paid time. Rounding has to work in both directions and average out so that you are paid for all the time you actually worked.
Do I get paid if I clock in early?
If you are working, yes. If you clock in early but do no work until your shift starts, your employer can disregard that time.
Is time clock rounding legal in California?
Neutral rounding has generally been accepted, but California does not allow rounding of meal-period punches, and courts have questioned rounding where an employer records exact times. Check the current position before relying on it.