Time Rounding Rules

Overview

Time rounding rules determine how actual clock-in/out times are rounded to standard billing or payroll increments. While rounding is legal and common, rules must be applied consistently and neutrally to comply with federal and state labor laws.

Common Rounding Increments

15-Minute Rounding

Most common for hourly employees - rounds to nearest quarter hour

6-Minute Rounding (0.1 hour)

Standard for professional services - rounds to nearest tenth of hour

5-Minute Rounding

Balance between precision and simplicity

1-Minute Rounding

Most precise, increasingly common - no rounding, tracks exact minutes

Legal Compliance

Federal FLSA Rules

• Rounding is permitted
• Must be neutral over time
• Cannot systematically underpay
• Must use consistent method

California Rules (2026)

• Neutral rounding required
• If precise time can be recorded, use it
• Rounding carries litigation risk
• Trend toward exact time payment