10 Key Insights From Home Depot’s Contentious 7-Minute Rule Case

Nick M./Yelp

At first glance, the “7-Minute Rule” sounds harmless—a simple rounding shortcut in payroll systems. In practice, it meant hours of unpaid time for thousands of workers. Home Depot’s policy rounds clock-ins before seven minutes down and after seven minutes up, letting small fragments of labor slip through the cracks. That tiny window sparked one of the biggest modern debates about timekeeping, fairness, and what a few lost minutes are really worth.

Exploring Why Home Depot Used It

Allen N./Yelp

Interestingly, what began as everyday habits sparked a deeper policy shift. Through early 2010s memos and training, Home Depot redefined these moments under federal wage laws by classifying them as non-compensable. Essentially, small daily actions turned into carefully timed corporate calculations.

Breaking Down How Rounding Worked

Kyrsten Sinema (1976–)/Wikimedia Commons

Under Fair Labor Standards Act guidelines, time transformed with precision. For instance, 8:07 rounded down to 8:00, while 5:23 bumped to 5:30. Six hours and seven minutes became six flat, but add just one minute, and suddenly it stretched to six-fifteen. It was math meets payroll magic.

Assessing Impact On Employee Paychecks

Kyrsten Sinema (1976–)/Wikimedia Commons

At first glance, it seemed fair to work eight minutes extra, and you’d get a 15-minute bonus. But miss that by a minute, and it vanished entirely. This uneven rounding, applied inconsistently across regions, quietly cost worker Delmer Camp nearly 470 minutes of unpaid labor over several years.

Examining Wage Theft Allegations

Tomwsulcer/Wikimedia Commons

When Delmer Camp took Home Depot to court in 2022, he pulled back the curtain on these practices. While the company insisted its rounding system was neutral, Camp argued it wasn’t. His lawsuit revealed how those small, rounded-down minutes added up to big unpaid wage losses.

Reviewing Legal Challenges From Workers

Coolcaesar at en.wikipedia/Wikimedia Commons

California’s Court of Appeals delved into labor laws after Home Depot sought summary judgment, defending its Kronos timekeeping system as compliant. Though the company initially won, Camp’s appeal triggered a full-scale legal review, which forced regulators to scrutinize whether such rounding truly met state wage protections.

Analyzing California’s Labor Law Response

Allen N./Yelp

What began as minor timing disputes evolved into a legal turning point. The 6th District Court ruled that with modern tech tracking every second and rounding was no longer defensible. Unlike the federal FLSA, California’s strict Labor Code insists that every minute matters when it comes to pay.

Showing How Tech Disrupted The Policy

Government of California/Wikimedia Commons

As labor compliance evolved, accuracy became non-negotiable. Home Depot leveraged Kronos to log every second, officially ending its 7-minute rule. Yet surprisingly, many employers across sectors still cling to outdated rounding methods. 

Capturing Media And Public Backlash

Ben Brennan/Wikimedia Commons

When reports on Home Depot’s 7-Minute Rule surfaced in October 2025, public reaction was swift. Employee chatter turned into headline stories, and soon the debate was about fairness. The policy also became a national symbol of how small-time tweaks can shape big paychecks.

Summarizing Home Depot’s Official Stance

U.S. Navy photo by Mass Communication Specialist 1st Class Rebekah Adler/Wikimedia Commons

Interestingly, Home Depot’s official statement did not mention the lawsuit. Instead, it framed the change as modernization, which aligned with FLSA rules that all worked time must be paid. The company emphasized that its update simply reflected evolving payroll accuracy and fair worker compensation standards.

Evaluating Broader Industry Implications

Ricardo Diaz from Los Angeles, USA/Wikimedia Commons

The Home Depot case didn’t happen in isolation—it exposed a deeper industry pattern. Many large retailers and logistics firms still rely on similar rounding systems inherited from pre-digital payroll practices. As precise timekeeping technology becomes standard, this case could push nationwide reforms, reshaping how companies define and compensate every minute of labor.