Time Clock Rounding Rules, Explained
What federal rules allow
The Department of Labor accepts recording start and stop times to the nearest 5 minutes, or the nearest tenth or quarter of an hour, as long as it averages out so employees are fully paid for all the time they actually work over time (29 CFR 785.48).
The "7-minute rule"
With quarter-hour rounding, times 1 to 7 minutes past the quarter round down and 8 to 14 minutes round up:
| Punch | Rounded (nearest 15) |
|---|---|
| 7:53 | 8:00 |
| 8:07 | 8:00 |
| 8:08 | 8:15 |
When rounding is risky
- Rounding that only ever favors the employer does not meet the "averages out" condition.
- Some states restrict rounding. California courts have limited it, especially around meal periods. If you are in California, the safest choice is to pay exact minutes.
- If you already record exact punch times, paying exact time avoids the question entirely.
ClearTimecard uses exact minutes by default. Pro users can apply 5, 6 or 15-minute rounding on the Team page.
Last reviewed November 2026. This is general information, not legal advice.