same figure, clock format
RecommendedThe basic formula
Every hours worked calculation comes down to one line: the time between clocking in and clocking out, less any unpaid break.
A shift from 7:30 to 16:15 is 8 hours 45 minutes elapsed. Take off a 45 minute unpaid lunch and the paid time is 8 hours 0 minutes, or 8.00 decimal hours.
The arithmetic is only awkward because clock time counts in sixties. It is easier to convert both times into minutes since midnight, subtract, and convert the answer back at the end.
- 7:30 is (7 x 60) + 30 = 450 minutes.
- 16:15 is (16 x 60) + 15 = 975 minutes.
- 975 minus 450 is 525 minutes elapsed.
- 525 minus a 45 minute break is 480 minutes, which is 480 divided by 60 = 8.00 hours.
Decimal hours versus hours and minutes
Both formats describe the same amount of time, and each has its place. Hours and minutes is what people say out loud and what appears on a schedule. Decimal hours is what gets multiplied by a pay rate, entered into payroll and billed to a client.
8 hours 15 minutes is 8 + (15 / 60) = 8.25 hours. Going the other way, 6.4 hours is 0.4 x 60 = 24 minutes, so 6 hours 24 minutes.
The failure mode is treating the minutes as if they were already decimal. Six hours 40 minutes is 6.67 hours, not 6.40 hours. The gap is 16 minutes on a single shift, and it compounds every day it is repeated.
Minutes to decimal reference table
Only 15, 30, 45 and 60 minutes convert to exact two place decimals. The rest repeat, so a two place figure is already slightly rounded. Keep more decimal places in intermediate steps and round only at the end.
Overnight shifts
When a shift crosses midnight, the end time is a smaller number than the start time and a plain subtraction returns a negative result. Add 24 hours to the end time first.
22:00 to 06:30 becomes 30.50 minus 22.00 = 8.50 hours elapsed. Less a 30 minute unpaid meal period, the paid time is 8.00 hours.
Decide which day the shift belongs to and stay consistent. Assigning the whole shift to the day it started is the usual convention and it keeps daily totals stable. The choice matters at the boundary between two workweeks, since it determines which week's hours the shift counts toward.
Overnight work often carries a shift differential, for example an extra $2.00 per hour for hours after 22:00. A differential is not overtime, but it does change the regular rate used to calculate overtime for that week, so the two interact.
Multiple shifts in one day
Split shifts are normal in hospitality, healthcare, transport and school support roles. Calculate each segment separately and add the results. Do not measure from the first clock-in to the last clock-out, because the unpaid gap in the middle would be counted as work.
Measured end to end, 8:00 to 17:45 would read as 9.75 hours, overstating the day by the 1.5 hour unpaid gap. Some states require a split shift premium when the workday is broken by an unpaid interval longer than a normal meal period, so check the local rule before treating a split shift as ordinary.
Paid and unpaid breaks
The general federal position is straightforward. Short breaks, customarily around 20 minutes or less, are counted as hours worked and are paid. Bona fide meal periods, normally 30 minutes or longer, during which the employee is completely relieved of duty, are not hours worked and are unpaid.
A meal period only stops the clock if the employee is genuinely free of duties. Answering the phone, monitoring equipment, covering a register or staying at a machine means the time is still work time even if the schedule called it lunch. Several states, California among them, set their own meal and rest break entitlements that go beyond the federal baseline.
Travel time
Ordinary commuting between home and the regular worksite before and after the workday is not work time. Beyond that, travel generally counts.
- Travel between job sites during the workday is work time.
- A special one day assignment in another city is generally work time, though the time that corresponds to a normal home to work commute may be deducted.
- Overnight travel away from home counts when it cuts across normal working hours, including on days off if the same hours are involved. Time as a passenger outside normal working hours is generally not counted.
- Driving at the employer's direction is work time regardless of the hour.
If travel is compensable, record it on the timesheet as its own line so it is visible and so it counts toward the weekly hours that determine overtime.
On-call time
Whether on-call time is paid turns on how restricted the employee is. An employee required to remain on the employer's premises, or so constrained that the time cannot be used effectively for personal purposes, is working while on call. An employee who simply carries a phone and can go about normal life, with a reasonable response window, is generally not working until actually called in.
Relevant factors include the required response time, how often calls actually come in, whether geographic limits apply, and whether the employee can trade or refuse a call. Time actually spent responding to a call is work time in either case.
Rounding
Many employers round recorded punches to the nearest quarter hour. The common convention rounds 1 to 7 minutes past a quarter hour down and 8 to 14 minutes up, so on average it evens out. Rounding is acceptable when it is neutral and does not, over time, systematically reduce pay. Applying it only in one direction, or requiring work before the rounded start time, is not neutral. Recording exact minutes avoids the issue and is increasingly common with digital clocks.
Worked example
An employee works a schedule of 7:30 to 16:15 with a 45 minute unpaid lunch, Monday through Friday, then a 4 hour Saturday shift with no break, at $19.00 per hour.
The week totals 44.00 hours. The first 40 hours pay at $19.00 for $760.00. The 4 overtime hours pay at $28.50, which is 1.5 x $19.00, for $114.00. Gross for the week is $874.00 before deductions.