How does FLSA 785.48 time-clock rounding work?

29 CFR 785.48(b) accepts recording start and stop times to the nearest 5 minutes, nearest one-tenth of an hour (6 minutes), or nearest quarter hour (15 minutes) when the practice averages out so employees are fully compensated for all time actually worked. This calculator rounds each in/out, then pays FLSA overtime after 40 on the rounded hours.

Classic five days 08:07–18:08 at $20 with nearest-15?

Each in 08:07 rounds down to 08:00 (7-minute rule); each out 18:08 rounds up to 18:15. That is 10.25h × 5 = 51.25h. Straight time $1,025 + extra half-time on 11.25 OT hours $112.50 = $1,137.50. Actual unrounded punches pay $1,102.50; clean five 10h pay $1,100.

Can an employer always round in its favor?

No. Section 785.48 accepts rounding only when it is used so that, over a period of time, employees are fully compensated for all time actually worked. Major discrepancies and one-sided practices that systematically short employees are not accepted.

Nearest 5 vs 6 vs 15?

CFR 785.48(b) lists nearest 5 minutes, nearest one-tenth of an hour (6 minutes), and nearest quarter hour (15 minutes). The classic on this page uses the common quarter-hour / 7-minute rule.

FLSA 785.48 Time-Clock Rounding — Nearest 5 / 6 / 15 Min Then After-40

Q: Same as /flsa-hours-worked/?

No. /flsa-hours-worked/ covers travel, waiting, on-call, and continuous-workday punches without a rounding pay line. This page is the § 785.48 rounding practice plus FLSA after-40 dollars.

FLSA 785.48 time-clock rounding — nearest 5 / 6 / 15 then after-40

29 CFR § 785.48 (with 29 U.S.C. § 207; WHD Fact Sheet #22): recording start/stop to the nearest 5 minutes, one-tenth hour (6 min), or quarter hour (15 min) is accepted when the practice averages out. Classic five days 08:07–18:08 @ $20 · nearest-15 → 08:00–18:15 = 10.25h × 5 = 51.25h → $1,137.50 vs actual-punch FLSA $1,102.50 vs clean /overtime/ $1,100 vs 778.310 $1,182.50 vs 778.118 $1,265.

How 785.48 pays

Round the punches first. Section 785.48(b) accepts industry practices that record starting and stopping time to the nearest 5 minutes, nearest one-tenth of an hour, or nearest quarter of an hour — provided the arrangement averages out so employees are fully compensated for all time actually worked.

Then FLSA after-40. This page applies ordinary § 207 weekly-40 overtime to the rounded hours (straight time on all rounded hours + extra half-time after 40). It is not a second 1.5× guess that ignores rounding.

Not /flsa-hours-worked/ / not waiting-time / not one-sided shorting. /flsa-hours-worked/ covers travel, waiting, on-call, and continuous-workday without a rounding pay line. Major discrepancies and practices that systematically underpay are not accepted under 785.48.

Classic · five days 08:07–18:08 @ $20 · nearest-15 → 08:00–18:15 = 10.25h × 5 = 51.25h → $1,137.50.
Rounding OFF · same punches → actual 50.0833h → $1,102.50.
Clean five 10h (already on quarter) → $1,100.
Nearest-6 (tenth hour) on classic punches → 08:06–18:06 = 10h × 5 → $1,100.
Nearest-5 on classic punches → 08:05–18:10 = 10.0833h × 5 → $1,112.50.

Sources

29 CFR § 785.48 — Use of time clocks (Cornell LII, HTTP 200)
29 CFR § 785.48 — eCFR (HTTP 200)
29 CFR § 785.48 — GovInfo CFR XML (HTTP 200)
29 U.S.C. § 207 — Maximum hours (HTTP 200)
WHD Fact Sheet #22 — Hours Worked (PDF, HTTP 200)
/flsa-hours-worked/ — Part 785 narrative cousin (no rounding pay line)
/overtime/ — ordinary after-40 baseline
/flsa-778-118-weekly-commission/ — weekly-commission cousin

FAQ

Classic five 08:07–18:08 @ $20 · nearest-15?

08:07→08:00, 18:08→18:15 → 10.25h × 5 = 51.25h; straight $1,025 + extra half $112.50 = $1,137.50.

Same as /flsa-hours-worked/?

No. That page is Part 785 travel / waiting / on-call / continuous workday without a rounding dollar line.

Same as /overtime/?

Only when punches already fall on the increment (clean five 10h → $1,100). Classic messy punches diverge: rounded $1,137.50 vs clean $1,100 vs actual $1,102.50.

Is the 7-minute rule required?

CFR 785.48(b) accepts nearest-quarter-hour practices that average out. The common 1–7 down / 8–14 up “7-minute rule” is the nearest-15 implementation used for the classic on this page.

Can rounding always favor the employer?

No. The practice must not result, over a period of time, in failure to compensate employees for all time actually worked.