For business owners · 3 min read
How to avoid overtime lawsuits
Short answer
Record, pay and agree. An electronic record agreed with your staff is the best defense; paying what the record shows is the best prevention.
Five measures
- Daily record per person.
- Written agreement on the record.
- Prior authorization of overtime.
- Daily review of late clock-outs.
- Payroll that matches the record.
The reform in one minute
The reform has two parts. On March 3, 2026, article 123 of the Constitution was amended to set the 40-hour workweek. On May 1, 2026, the Federal Labor Law was amended, which is where the detail is.
- The maximum working week drops from 48 to 40 hours, two hours per year, between 2027 and 2030.
- Overtime has a weekly cap: it is paid at double time up to the cap and at triple time for up to 4 more hours.
- Each company must electronically record the start and end time of each person's workday.
- Not keeping that record is fined 250 to 5,000 UMA.
- Salary and benefits cannot go down because of the reduction in hours.
What remains pending are the STPS general rules, which will define who the record applies to and what exceptions there will be. They take effect on January 1, 2027.
| Year | Maximum working hours | Double-time overtime | Triple-time overtime |
|---|---|---|---|
| 2026 | 48 h | 9 h | 4 h |
| 2027 | 46 h | 9 h | 4 h |
| 2028 | 44 h | 10 h | 4 h |
| 2029 | 42 h | 11 h | 4 h |
| 2030 | 40 h | 12 h | 4 h |
Decree published in the Official Gazette of the Federation on May 1, 2026, second and fourth transitory provisions, and article 68 of the LFT. Each change applies from January 1.
Common mistakes
- Leaving it for December.
- Choosing only by price, without checking whether the team will use it.
- Thinking the notebook is still enough.
- Not agreeing on the record in writing.
- Paying differently from what the record shows.
What to do now
- Ask your accountant and your lawyer what applies to you.
- Calculate how many hours you need to reorganize.
- Decide how you will record working time.
- Start before January.
- Review the record every day during the first month.
Related terms
Mandatory rest days in Mexico. These are the holidays set by article 74 of the Federal Labor Law.
INFONAVIT contributions: what they are. The INFONAVIT contribution is 5% of each person's contribution base salary, paid by the company.
What the UMA is and how much it is worth. The UMA is the Unit of Measure and Update (Unidad de Medida y Actualización): the peso reference for calculating fines, contributions and procedures.
Frequently asked questions
How long can a worker make a claim?
Up to one year back.
Is the reform already in force?
Yes. The reform to the Federal Labor Law took effect on May 1, 2026. The reduction in working hours starts on January 1, 2027.
Who monitors compliance?
The Ministry of Labor and Social Welfare, through inspections.
Where do I find the official text?
In the Official Gazette of the Federation of May 1, 2026 and in the current version of the Federal Labor Law published by the Chamber of Deputies.
Does this replace the advice of a lawyer?
No. It is general information. For decisions about your company, consult a labor lawyer.
Legal basis and sources
- Overtime: articles 66 and 68 of the LFT and fourth transitory provision of the decree.
- Fines: articles 992, 994 and 1002 of the LFT.
- Workday as time at the company's disposal: article 58 of the LFT.
- Retention and production of attendance records: article 804 of the LFT.
- Decree amending the Federal Labor Law on the reduction of the working week. Official Gazette of the Federation, May 1, 2026.
- Federal Labor Law, current text. Chamber of Deputies.
How we write this content. The Sicheca team writes it from the official text of the law. When something is not yet defined by the authority, we say so. It is general information and does not replace the advice of a lawyer or an accountant.