title: 45 minutes is 0.75 of an hour. That one fact fixes most payroll mistakes.
intro: > Payroll math breaks the moment you try to multiply dollars by "seven hours and forty-five minutes." Dollars are decimal. Minutes are base‑60. The fix: divide minutes by 60. 45 ÷ 60 = 0.75. So 7:45 becomes 7.75 hours. 7.75 × an hourly wage gives the straight‑time pay. Every time‑card total needs that conversion before you touch a calculator, or the paycheck is wrong.
The only conversion formula you need
Divide minutes by 60.
That is the whole operation. Five minutes is 5 ÷ 60 = 0.0833. Twenty minutes is 20 ÷ 60 = 0.3333. Forty‑five minutes is 45 ÷ 60 = 0.7500. The hours stay whole. Append the decimal.
A short table locks it in for the common punches:
| Minutes | Decimal hours |
|---|---|
| 1 | 0.0167 |
| 5 | 0.08 |
| 7 | 0.1167 |
| 10 | 0.17 |
| 13 | 0.2167 |
| 15 | 0.25 |
| 20 | 0.33 |
| 25 | 0.42 |
| 30 | 0.50 |
| 35 | 0.58 |
| 40 | 0.67 |
| 45 | 0.75 |
| 50 | 0.83 |
| 55 | 0.92 |
Why the table stops at 55 minutes
Sixty minutes equals one full hour. A punch of 60 minutes is 1.00 in decimal. The table covers every partial‑hour increment you will see on a time card before the next hour rolls over.
How to read a punch like 7:45
Keep the 7. Replace the colon and the minutes with the decimal from the table. 7:45 becomes 7.75. 8:15 becomes 8.25. 9:30 becomes 9.50. No mental arithmetic needed.
The one‑minute edge case
One minute is exactly 1/60 in decimal: 0.0167. Payroll systems carry that decimal to four places before rounding the final dollar amount. Dropping it early creates a drift that compounds across a pay period.
How the 7‑minute rounding rule uses your decimal conversion
Federal regulation 29 CFR § 785.48(b) lets employers round punches to the nearest quarter‑hour. The catch: rounding must be neutral over time. It cannot systematically shave minutes off the payroll.
The "7‑minute rule" is the practical shorthand. Punches 1 to 7 minutes after a quarter‑hour mark round down. Punches 8 to 14 minutes after round up. A clock‑in at 8:07 rounds to 8:00. A clock‑in at 8:08 rounds to 8:15.
California courts have narrowed this. The Donohue v. AMN Services decision in 2021 held that rounding is not lawful when the employer's system can capture exact time. Other states may follow.
What the quarter‑hour decimals are
The four rounding anchors are 0.00, 0.25, 0.50, and 0.75. Every rounded punch lands on one of those four decimals. That is why the 7‑minute rule exists: it maps a 15‑minute window to the nearest anchor.
When rounding stops being neutral
A policy that rounds every 8:07 down and every 4:53 up looks neutral on paper. If the actual punch data shows more minutes lost than gained over a pay period, the Department of Labor considers it unlawful. Neutrality is measured by the arithmetic, not the policy wording.
Why exact‑minute conversion still matters
Even if your employer rounds, keep your own unrounded record. The decimal conversion of your raw punches is the evidence you will need if a dispute reaches the Wage and Hour Division.
Why payroll demands decimals
Payroll software speaks base‑10. An hourly rate is a decimal number. Multiply it by "7 hours and 45 minutes" and the arithmetic fails. Multiply it by 7.75 and the math works instantly.
Time clocks have recorded in decimals since the Bundy Manufacturing punch‑card days of the 1890s. Clerks totalled cards by hand. Rounding to the nearest quarter‑hour was not a policy choice. It was a survival tactic for manual arithmetic.
The Bundy clock legacy
Bundy Manufacturing, later absorbed into IBM, popularized the mechanical punch clock in the 1890s. Workers inserted a card, pressed a lever, and the machine stamped the time. "Punching in" enters the language there. Payroll clerks then converted those stamped times to decimal hours by hand, using a printed conversion table much like the one above.
Why the 40‑hour week locked in the decimal system
The Fair Labor Standards Act of 1938 set the overtime threshold at 40 hours in a workweek. That threshold has not changed. A 40‑hour week with quarter‑hour rounding produces clean decimal totals: 40.00, 40.25, 40.50. The decimal system and the federal workweek were built to fit each other.
When daily overtime rules change your decimal total
Federal law triggers overtime after 40 hours in a workweek. Period. No daily cap.
California does it differently. Overtime after 8 hours in a day. Double time after 12 hours. Alaska, Nevada, and Colorado also have daily triggers. Oregon requires overtime after 10 hours a day in manufacturing. Puerto Rico mandates overtime after 8 hours a day and 40 hours a week.
If you work across state lines, convert minutes to decimals first, then apply the stricter state rule. The smaller decimal error on a daily‑OT card costs more than on a straight‑40 card.
California's double‑trigger system
A California time card can hit overtime two ways in the same week: more than 8 hours in a single day, or more than 40 hours across the week. The employer must pay the higher of the two calculations for each hour. Converting minutes to decimals correctly is not optional here. A 0.02 error on a daily total compounds across five or six shifts.
The seventh‑day rule in Kentucky
Kentucky requires overtime on the seventh consecutive day worked in a workweek, regardless of the daily or weekly hour total. The decimal conversion is the same. The trigger is the day count.
Biweekly pay periods and your decimal conversion
Biweekly pay means 26 pay periods a year. Semimonthly means 24. The difference is two full paychecks.
A biweekly employee who works 45 hours in a week gets five hours of overtime on that check. A semimonthly employee might have a pay period that cuts a workweek in half. The overtime calculation gets messier. Converting minutes to decimals is the easy part. Knowing which workweek the hours belong to is where the disputes start.
Why 26 does not equal 24
Biweekly pay periods always contain exactly 14 days. Semimonthly periods vary between 13 and 16 days. A workweek that straddles a semimonthly cutoff forces the payroll system to split hours across two pay periods. The decimal conversion stays the same. The hour allocation does not.
The three‑paycheck month
Biweekly employees get two extra paychecks a year. Those months have three pay dates instead of two. The decimal math does not change, but the budgeting does.
Do breaks get subtracted before or after the decimal conversion
Federal law does not require meal or rest breaks. But short breaks of 5 to 20 minutes must be paid if the employer offers them. Bona fide meal periods of 30 minutes or longer are unpaid, provided the employee is completely relieved of duty.
California requires a 30‑minute meal break after five hours and a second after ten hours. Paid 10‑minute rest breaks are due every four hours. New York requires a meal break for shifts over six hours that span certain times.
If you work through lunch, that time is paid. Subtract it before converting to decimals, or do not subtract it at all. The FLS A calls it compensable.
The 30‑minute test for unpaid meals
The Department of Labor draws a bright line at 30 minutes. A 29‑minute break is short and must be paid. A 30‑minute break where the employee is completely relieved of duty is unpaid. The decimal for 30 minutes is 0.50. That half‑hour is the difference between a paid and an unpaid block on the time card.
Automatic lunch deductions
Some employers deduct 30 minutes automatically for any shift over five or six hours. If the employee worked through that lunch, the deduction is unlawful. The employee's own decimal‑converted record of the actual hours worked is the evidence that corrects it.
What recordkeeping rules require you to keep
The Fair Labor Standards Act of 1938 did not require a time clock. It required "accurate records." Employers must keep the employee's full name, address, occupation, hours worked each day and each week, regular rate, overtime earnings, and total wages paid.
Payroll records: three years. Time cards and wage‑rate tables: two years. The Age Discrimination in Employment Act of 1967 sets those retention windows.
No specific format is mandatory. Paper, digital, time clock, handwritten log. All are legal. What matters is that the record exists and is accurate.
What "hours worked each day" means in decimal
The regulation does not say "hours and minutes." It says "hours worked." The decimal conversion is the format that satisfies the recordkeeping requirement. A log that shows "7:45" is incomplete without the decimal translation to 7.75.
The two‑year vs. three‑year split
Time cards and wage‑rate tables: keep them two years. Payroll records that show total wages paid: keep them three years. The ADE A sets that split. If a time card is the only record of hours worked, treat it as a payroll record and keep it three years.
Common overtime advice that gets the decimal math wrong
"Salaried means no overtime." False. Exempt status determines overtime eligibility, not the pay method. Many salaried employees are non‑exempt and entitled to time‑and‑a‑half. The Department of Labor sets the salary threshold for exempt employees. The figure changes with rulemaking and litigation. Check the current DOL Wage and Hour Division threshold before classifying anyone.
"Overtime is always after eight hours." Only in certain states. The federal rule is 40 hours in a workweek. Nothing else.
"Lunch breaks are required by law." Not federally. Some states require them. Most do not.
"Rounding is illegal." Federal law permits it if neutral. Some states are restricting it. Both extremes are wrong.
The exempt salary threshold moves
The DOL adjusts the exempt salary threshold through rulemaking. Courts sometimes block or uphold those rules. A figure quoted in any article is a snapshot. Before classifying an employee as exempt, pull the current number from the Wage and Hour Division website.
"Regular rate" is not the hourly wage
The FLSA calculates overtime on the "regular rate," which includes non‑discretionary bonuses, shift differentials, and commissions. The decimal conversion applies to the hours. The regular rate calculation applies to the dollars. Both must be right.
Which time zone controls when the workweek starts
A workweek is a fixed, recurring 168‑hour period. The employer defines when it starts. Midnight Eastern? Midnight Pacific? For remote teams spread across U.S. time zones, that choice determines which hours fall into which pay period.
Daylight saving complicates it. The U.S. springs forward the second Sunday in March and falls back the first Sunday in November. Arizon a and Hawaii do not observe it. A graveyard shift on a spring‑forward night loses an hour. The FLS A requires that hour to be paid if the employee worked it. The decimal conversion does not change. The hour count does.
The six U.S. time zones that matter for payroll
Eastern, Central, Mountain, Pacific, Alaska, and Hawaii‑Aleutian. Territories add Atlantic, Samo a, and Chamorro. A remote employee in the Eastern zone working for a Pacific‑zone employer may have a workweek that starts at 3:00 a.m. local time. The decimal conversion is the same. The date on the time card shifts.
The spring‑forward graveyard shift
On the second Sunday in March, clocks jump from 2:00 a.m. to 3:00 a.m. A shift that spans that gap is one hour shorter on the clock. The employee worked the real elapsed time. The decimal total must reflect the hours actually worked, not the clock face.