Time tracking

What is punch rounding?

Also called: time clock rounding, 7 minute rule

Punch rounding adjusts clock times to a set interval, commonly the nearest 15 minutes, and is only lawful if it is neutral and doesn't shortchange employees over time.

The traditional practice rounds to a quarter hour with a 7-minute break point, so 7:53 becomes 7:53 rounded to 8:00 and 8:08 rounds back to 8:00. Federal rules permit this as a practical recording convenience.

Neutral is the operative word. Rounding that always favors the employer, like rounding start times up and end times down, fails, and California courts have grown hostile to rounding generally when exact times are available.

Modern systems capture exact punches, which makes rounding harder to justify at all. If you use it, apply it consistently and audit whether it nets to roughly zero across employees.

Source: 29 CFR 785.48 (recording working time)

Handle this automatically

Kloqk is a free employee time clock for small business. It records the punches, applies your rules, and does this arithmetic for you.

Start free Time clock rounding rules by state

Related terms

Timesheet

A timesheet is the record of hours an employee worked in a pay period, used to calculate pay and to prove compliance if you are ever audited.

Time theft

Time theft is being paid for time not worked, through padded timesheets, early punches, long unrecorded breaks, or buddy punching.

General information for US employers, not legal advice. Wage and hour rules change and vary by state, so confirm specifics with your state labor agency or counsel.