How does the 7-minute rule work?

If an employee clocks in between 1 and 7 minutes past the interval, you round down. If they clock in between 8 and 14 minutes past, you round up to the next quarter-hour.

The 7-Minute Rounding Rule for Payroll (2026 Guide)

Processing timesheets down to the exact second is a nightmare for HR departments. To solve this, the federal government allows employers to round employee clock-in and clock-out times. The most common method is the 7-Minute Rule (also known as the 1/4 hour rounding rule).

What is the 7-Minute Rule?

Under the Fair Labor Standards Act (FLSA), employers are legally permitted to round employee time to the nearest 15 minutes (quarter-hour). To do this fairly, the Department of Labor established a strict halfway-point rule at the 7-minute mark.

The Golden Rule of Rounding

1 to 7 Minutes: Round down to the nearest quarter-hour.
8 to 14 Minutes: Round up to the next quarter-hour.

The 15-Minute Rounding Cheat Sheet

Use this chart to determine exactly how a punched time should be rounded before entering it into your payroll software.

Actual Clock Minutes	Rounding Direction	Rounded Time
:01 to :07	Round Down ↓	:00
:08 to :14	Round Up ↑	:15
:16 to :22	Round Down ↓	:15
:23 to :29	Round Up ↑	:30
:31 to :37	Round Down ↓	:30
:38 to :44	Round Up ↑	:45
:46 to :52	Round Down ↓	:45
:53 to :59	Round Up ↑	:00 (Next Hour)

Real-World Examples

Let's look at how this math works for a standard 8:00 AM to 5:00 PM shift:

Scenario A (Early Arrival): John clocks in at 7:54 AM. Because 54 minutes is past the 8-minute halfway mark for the next hour, his time rounds up to 8:00 AM.
Scenario B (Late Arrival): Sarah gets stuck in traffic and clocks in at 8:06 AM. Because 6 minutes is under the 7-minute mark, her time rounds down to 8:00 AM.
Scenario C (Late Departure): David stays late and clocks out at 5:11 PM. Because 11 minutes is past the 8-minute mark, his time rounds up to 5:15 PM, granting him an extra 15 minutes of paid time.

The Neutrality Rule (Warning for Employers)

While the 7-minute rule is completely legal, there is one major catch: it must be neutral.

An employer cannot selectively use rounding only when it benefits the company. If you round down when an employee is late, you must also round in their favor when they clock out late. If an auditor finds that your rounding policy consistently results in employees being underpaid for time worked, you could face severe wage theft penalties.

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Frequently Asked Questions

Is the 7-minute rounding rule legal?

Yes. Under the Fair Labor Standards Act (FLSA), employers are legally permitted to round employee time to the nearest quarter-hour (15 minutes), provided the rounding is applied fairly and does not consistently underpay employees over time.

Can I round lunch breaks?

Generally, no. The Department of Labor strictly monitors unpaid meal breaks. If you round an employee's 30-minute unpaid lunch down to 15 minutes, you may inadvertently violate minimum wage laws. Rounding should primarily be reserved for shift start and end times.

What is 5-minute rounding?

The FLSA also allows employers to round to the nearest 5 minutes (1/12th of an hour) instead of 15 minutes. In a 5-minute rounding system, the split happens at the 2.5-minute mark. However, 15-minute rounding remains the industry standard because it easily converts into decimal time (0.25, 0.50, 0.75) for payroll software.

Disclaimer: MyShiftCalc provides mathematical calculators and educational content, not legal advice. Wage and hour laws vary significantly by state. For example, California has very strict rules regarding rounding that may override federal FLSA allowances. Always consult your HR department or a labor attorney regarding company policies.