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Glossary

Time clock rounding

Adjusting recorded punch times to a fixed interval, such as the nearest quarter hour, before those hours are paid.

Time clock rounding is the practice of adjusting a recorded punch to the nearest fixed interval before it is paid, most often the nearest five, six or fifteen minutes. A shift clocked at 8:57 and 17:04 might be paid as 9:00 to 17:00. It is a holdover from paper timesheets and mechanical clocks, when exact minutes were genuinely expensive to total.

The rule that matters

Rounding is lawful in many jurisdictions only where it is neutral: it must be as likely to round in the employee's favour as against it, and it must not systematically shave time over a period. A policy that always rounds the start up and the finish down is not rounding, it is a pay cut applied a few minutes at a time, and it is the shape wage claims are built on.

  • Round in both directions, not just the one that saves money
  • Apply the same interval to every punch type
  • Keep the raw punch alongside the rounded value
  • Review the net effect across a period rather than per shift

Whether you need it at all

The original reason for rounding was arithmetic, and that reason has gone. A system that totals exact minutes has no clerical burden to relieve, so rounding now buys convenience for nobody and introduces a policy that has to be defended. The simplest defensible answer in a digital time system is usually to pay the minutes that were actually worked.

Rounding was an answer to adding up by hand. Nothing adds up by hand any more.

How Formclock handles this: time clock.

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Common questions

Is the seven minute rule a law?+
It is a convention drawn from United States guidance permitting rounding to the nearest quarter hour, where minutes one to seven round down and eight to fourteen round up. It is a rounding method, not a universal entitlement, and it only holds where rounding is neutral overall.
Should we keep the original punch times?+
Yes. Keep the raw capture and treat the rounded figure as a derived value. If the policy is ever questioned you need to be able to show both, and reconstructing the original from a rounded number is impossible.
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