How time clock rounding works
Federal regulation 29 CFR 785.48(b) accepts the long-standing practice of recording start and stop times "to the nearest 5 minutes, or to the nearest one-tenth or quarter of an hour," on the condition that it averages out and does not, over time, fail to pay employees for all the time they actually work (29 CFR 785.48). Rounding must go both ways: a system that always rounds in the employer's favour is not what the regulation allows. Georgia has no rule of its own, so this federal standard applies.
The quarter-hour version is known as the 7-minute rule: a punch within 7 minutes after a quarter hour rounds back to it, and a punch 8 or more minutes after rounds forward to the next one. 7:53 is 7 minutes before 8:00, so it rounds to 8:00; 7:52 would round to 7:45.
Worked example (pre-filled). Punches of 7:53 AM and 4:08 PM round to 8:00 AM (08:00) and 4:15 PM (16:15) under quarter-hour rounding. The actual shift is 8.25 hours and the rounded shift is 8.25 hours, a difference of 0 min. Switch to tenth-hour rounding and the same punches land on different marks, because 6-minute increments fall at :00, :06, :12 and so on.
Rounded time goes onto the time card as decimal hours (a quarter hour is 0.25, a tenth is 0.10); the decimal converter and the time card calculator take it from there.
Formula and assumptions
exact half-way points (7.5 min for the quarter hour) round up
rounded hours = (rounded out − rounded in) ÷ 60
- Rounding is applied to each punch, which is the usual practice; some systems round the daily total instead.
- No break is deducted here; combine with the lunch break calculator if needed.
Frequently asked questions
What is the 7-minute rule?
Quarter-hour rounding: a punch 1 to 7 minutes past a quarter-hour mark rounds down to it, and a punch 8 to 14 minutes past rounds up to the next. 8:07 becomes 8:00 and 8:08 becomes 8:15.
Is time clock rounding legal?
Yes, under 29 CFR 785.48(b), if it is neutral and does not result over time in employees being paid for less than all the time they worked. Georgia applies the federal rule.
Can an employer round only in its own favor?
No. Rounding that always benefits the employer does not meet the regulation’s condition that the practice average out.
What is tenth-of-an-hour rounding?
Punches round to the nearest 6 minutes, so hours appear in 0.1 steps: 8:02 becomes 8:00 (8.0) and 8:04 becomes 8:06 (8.1). 8:03 is the exact midpoint; this calculator rounds midpoints up.
Related calculators
- All time & hours calculators
- Hours to decimal converter: Convert hours and minutes to decimal hours for payroll, and back
- Time card calculator: Total a week or two weeks of in/out times with breaks and overtime
- Lunch break calculator: Hours worked after deducting an unpaid lunch, and the pay difference
- Georgia paycheck calculator: take-home pay after federal, FICA and Georgia tax
- Overtime pay in Georgia: rules and taxes
Sources
- 29 CFR 785.48, Use of time clocks (rounding practices), via Cornell LII
- Georgia Department of Labor, Individuals FAQs: Fair Labor Standards Act
This calculator gives general estimates from the figures you enter. It is not tax, legal, payroll or financial advice. See our disclaimer.