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Payroll Time Rounding: The 7-Minute Rule Explained

Many time clocks round punches to the nearest 15 minutes (a quarter hour). US federal rules allow rounding to the nearest 5 minutes, tenth of an hour or quarter hour, as long as it is neutral over time and does not always favor the employer (29 CFR 785.48).

The 7-minute rule

With quarter-hour rounding, 1 to 7 minutes past a quarter hour round down, and 8 to 14 minutes round up. So a punch at 8:07 counts as 8:00, and a punch at 8:08 counts as 8:15.

Minutes past the quarter hourRounds to
0–7Down to the quarter hour
8–14Up to the next quarter hour

Quarter hours in decimal

MinutesDecimal
150.25
300.50
450.75
601.00

Some states set stricter rules, and many employers now pay to the exact minute. Check your employee handbook. To see your exact hours, use the time card calculator and the decimal converter.

Updated Oct 9, 2026.