What is the 7 minute rule for payroll?

Written by Editorial Team | Last Updated: August 2026

The seven-minute rule in payroll compliance dictates how companies legally round employee clock-in and clock-out times. Because time is tracked in fifteen-minute blocks, the federal rounding convention dictates that minutes one through seven can be rounded down to the nearest quarter hour, while minutes eight through fourteen must be rounded up. Employers must ensure this rounding practice cuts both ways over time so employees are fully compensated for all actual hours worked.

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