Timesheet Rounding Rules Explained (7-Minute Rule, 2026)
Federal rules allow employers to round punch times, most commonly to the nearest quarter hour. The rule that makes quarter-hour rounding legal is usually called the 7-minute rule: minutes 1 through 7 round down to the previous quarter hour, and minutes 8 through 14 round up to the next one.
JULY 28, 2026 · BY THE CLOX TEAM
Federal rules allow employers to round punch times, most commonly to the nearest quarter hour. The rule that makes quarter-hour rounding legal is usually called the 7-minute rule: minutes 1 through 7 round down to the previous quarter hour, and minutes 8 through 14 round up to the next one.
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The 7-minute rule in a table
The same split applies at clock-out. A worker who clocks out at 3:37 is paid to 3:30, and one who clocks out at 3:38 is paid to 3:45.
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The requirement people miss: neutrality
Rounding is only legal when it doesn't consistently favor the employer. Over time, round-downs and round-ups have to come out roughly even. Two policies fail this test often:
- Rounding clock-ins up and clock-outs down. That takes minutes from the worker on both ends of every shift.
- Grace periods that only work one direction, for example accepting early clock-ins but paying from the scheduled start, while counting late clock-ins exactly.
If your rounded totals are consistently lower than actual totals, the policy is not neutral, and that gap is what wage claims are built on.
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Worked example, one week
A worker punches 7:04 to 3:33, Monday through Friday. Actual daily time is 8 hours 29 minutes. Under quarter-hour rounding, 7:04 rounds to 7:00 and 3:33 rounds to 3:30, so each paid day is 8 hours 30 minutes. This week rounds in the worker's favor by 5 minutes, which is fine. The point of the example: check a real week from your own records the same way, in both directions.
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The simpler option
Rounding exists because paper timesheets and mechanical clocks made exact minutes hard to handle. Software removes the reason. Clox records exact punch times, pays can be computed to the minute, and the rounding question disappears along with the neutrality risk. If you keep rounding for policy reasons, exact punch records still let you prove your policy is neutral, which is the thing an auditor or a lawyer will ask for.
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FAQ
Is the 7-minute rule required?
Can we round only clock-ins?
Do states have their own rounding rules?
This is general information, not legal advice.
Clox records exact punch times, so rounding stops being a policy risk. Free for 14 days, no credit card.