How to Track and Calculate Work Hours
Quick Answer
Subtract clock-in from clock-out, then subtract unpaid breaks. 8:00 AM to 5:00 PM with a 30-min lunch = 8.5 hours. Convert to decimal for payroll: 8 hours 30 minutes = 8.50 decimal hours. Track daily, sum weekly, and apply overtime after 40 hours.
Basic Work Hours Calculation
The formula is simple: Hours Worked = Clock-Out Time − Clock-In Time − Unpaid Breaks.
If you clocked in at 8:15 AM and clocked out at 4:45 PM with a 30-minute unpaid lunch, you worked: 4:45 PM − 8:15 AM = 8 hours 30 minutes, minus 30 minutes for lunch = 8 hours exactly.
The tricky part is handling the time subtraction. Convert to 24-hour format first: 16:45 − 8:15 = 8:30 (8 hours 30 minutes). Then subtract the 30-minute break.
Weekly Timesheet Example
| Day | In | Out | Lunch | Hours | Decimal |
|---|---|---|---|---|---|
| Mon | 8:00 | 5:15 | 0:30 | 8h 45m | 8.75 |
| Tue | 7:45 | 4:30 | 0:30 | 8h 15m | 8.25 |
| Wed | 8:00 | 5:00 | 0:30 | 8h 30m | 8.50 |
| Thu | 8:30 | 6:00 | 0:30 | 9h 00m | 9.00 |
| Fri | 8:00 | 3:30 | 0:30 | 7h 00m | 7.00 |
| Weekly Total | 41h 30m | 41.50 | |||
This employee worked 41.5 hours. Under federal FLSA rules, 1.5 hours are overtime (anything over 40 in a workweek).
Understanding Overtime Rules
The Fair Labor Standards Act (FLSA) requires overtime pay of at least 1.5 times the regular rate for hours worked beyond 40 in a workweek. This applies to non-exempt employees, which includes most hourly workers.
Some states have additional rules. California requires daily overtime after 8 hours and double time after 12 hours. Colorado requires overtime after 12 hours per day or 40 hours per week. Always check your state's labor laws.
| Overtime Type | Rate | When It Applies |
|---|---|---|
| Federal weekly | 1.5x | After 40 hours/week |
| California daily | 1.5x | After 8 hours/day |
| California extended | 2.0x | After 12 hours/day |
| 7th consecutive day (CA) | 1.5x first 8h, 2.0x after | Working 7 days straight |
Rounding Rules
Many employers round time to the nearest quarter hour (15 minutes). Under the FLSA, this is legal as long as rounding averages out over time — it can't consistently favor the employer.
| Actual Clock-In | Rounded To | Rounding Direction |
|---|---|---|
| 8:01 – 8:07 | 8:00 | Down (employee loses 1–7 min) |
| 8:08 – 8:14 | 8:15 | Up (employee gains 1–7 min) |
| 8:15 – 8:22 | 8:15 | Down |
| 8:23 – 8:29 | 8:30 | Up |
Break Time Rules
Federal law doesn't require employers to provide meal or rest breaks. But if they do, the rules around paid vs. unpaid are clear:
Short breaks (5–20 minutes): Paid and counted as hours worked. The employer must compensate for these.
Meal breaks (30+ minutes):Can be unpaid if the employee is completely relieved of all duties. If the employee must remain at their desk or answer phones during lunch, it's paid time.
Many states have stricter rules. California requires a 30-minute meal break before the 5th hour of work and a second break before the 10th hour. Missing a required break triggers a penalty of one hour of pay.
Converting to Decimal Hours for Payroll
Most payroll systems require decimal hours, not hours and minutes. The conversion: divide minutes by 60.
| Minutes | Decimal | Minutes | Decimal |
|---|---|---|---|
| 5 | 0.08 | 35 | 0.58 |
| 10 | 0.17 | 40 | 0.67 |
| 15 | 0.25 | 45 | 0.75 |
| 20 | 0.33 | 50 | 0.83 |
| 25 | 0.42 | 55 | 0.92 |
| 30 | 0.50 | 60 | 1.00 |
Getting this wrong costs money. Entering 7.45 instead of 7.75 for 7 hours 45 minutes shortchanges you by 18 minutes per day. Over a year, that adds up to dozens of unpaid hours.
Use the work hours calculator to automatically calculate daily hours, weekly totals, overtime, and decimal conversions from your clock-in/clock-out times.