For Human Resources · 3 min read
Overtime policy: what it should say
Short answer
An overtime policy states who authorizes it, when, how many hours and how it is recorded. Its purpose is that no one exceeds the caps out of habit.
The minimum
- Prior authorization in writing or in the system.
- Annual weekly cap and a maximum of 4 hours per day on 4 days.
- Never more than 12 total hours in a day.
- No overtime for people under 18.
- Double and triple pay.
What makes it work
A notice before someone reaches the cap.
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
- Implementing the record without explaining it to the team.
- Adjusting clock-ins to match the shift.
- Not having someone who reviews every day.
- Leaving out managers and remote staff.
- Measuring only tardiness and not hours worked.
What to do now
- Gather the actual hours by position.
- Present to management the effect of the 46-hour workday.
- Write or update the overtime policy.
- Choose the recording system and run a one-week trial.
- Communicate the change and sign the agreement.
Related terms
Mixed shift: what it is and how long it lasts. A mixed shift combines day and night hours, as long as the night hours are less than three and a half.
What is RESICO. RESICO is the Simplified Trust Regime (Régimen Simplificado de Confianza), a tax regime with reduced income tax rates for individuals and companies with income below certain limits.
Sunday premium: what it is and how it is calculated. The Sunday premium is an additional payment of at least 25% on the salary of an ordinary day for anyone who works on Sunday.
Frequently asked questions
Can I prohibit overtime?
You can choose not to authorize it. If it happens anyway and you tolerate it, you will have to pay for it.
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.
Does the law require a particular system?
No. It asks that the record be electronic and include the start and end time for each person.
What happens when the STPS publishes its rules?
They will specify who the record applies to and its exceptions. It is worth checking them as soon as they appear in the Official Gazette of the Federation.
Legal basis and sources
- Overtime: articles 66 and 68 of the LFT and fourth transitory provision of the decree.
- UMA value: INEGI, published every January in the Official Gazette of the Federation.
- 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.