LABOR REFORM · MEXICO 2027
Mandatory time clock in 2027: what your company needs to know
The reform published in the Official Gazette (DOF) on May 1, 2026 gradually reduces the workweek from 48 to 40 hours and makes electronic tracking of each employee's working hours mandatory starting January 1, 2027. Here's what the law says, the risks you face if you don't comply, and how to start preparing today.
From 48 to 40 hours: the real timeline
The reduction is gradual through 2030 and does not involve any cut to wages or benefits. Electronic time tracking is mandatory starting in 2027.
2026
48 hrs
Reform in effect (DOF, May 1)
2027
46 hrs
Mandatory electronic time tracking Jan 1
2028
44 hrs
Gradual reduction
2029
42 hrs
Gradual reduction
2030
40 hrs
Final goal of the reform
What the Federal Labor Law says
The decree adds Section XXXIV to Article 132 of the LFT. This is, word for word, what it establishes as an employer obligation:
"To electronically record the working hours of each employee, including start and end times, and to provide such records to the authorities upon request."
ART. 132, SECTION XXXIV — FEDERAL LABOR LAW
Important: the law does not require a physical or biometric time clock. Employers can comply using different systems:
Biometric time clock
Proximity cards
Mobile apps ✓
Computer-based time tracking systems
Electronic platforms with reliable record-keeping
ART. 132, SECTION XXXIV
Mandatory electronic time tracking
Start and end times for each employee. STPS regulations in effect starting January 1, 2027.
ART. 804, SECTION III
Keep and present attendance records
Employers must keep and present attendance records, where they exist, in the event of a labor lawsuit.
ART. 805
Without records, the worker is presumed right
If you fail to present the records, the facts alleged by the employee are presumed true: you lose the lawsuit automatically.
ART. 784
The burden of proof falls on the employer
In disputes over working hours, it's the company that must prove the schedule — without records, there's no defense.
ARTS. 66 AND 68
Overtime at double and triple pay
Maximum 3 overtime hours per day, 3 times a week. Paid at double rate, and triple beyond 9 hours per week — every undocumented minute costs you.
ART. 994, SECTION IV BIS
Fines from 250 to 5,000 UMA
Failing to keep electronic time records carries fines from $29,325 to $586,500 MXN (2026 UMA).
The cost of non-compliance
A paper log or an Excel file can be altered, has no geolocation, and doesn't hold up as evidence. Here's what you risk without a reliable digital record:
$586,500
Maximum STPS fine for failing to keep electronic time records (250 to 5,000 UMA).
2 years
Of overtime a worker can claim retroactively if you have no records to prove otherwise.
3x
Triple-rate overtime pay when exceeding 9 hours per week — and if undocumented, it's not tax-deductible with the SAT.
$14,050
IMSS fine for each incorrectly registered employee — multiplied by the size of your workforce.
Get compliant today with Capital Check In
Capital Check In covers exactly what the reform requires: electronic clock-in and clock-out records with digital evidence, right from each employee's phone. No hardware to buy, no manual entries.
Time clock on your phone
Clock-in and clock-out records with exact timestamps from the app — the electronic record required by Art. 132, Section XXXIV.
Biometric verification
Facial recognition on every check-in: records that are impossible to forge and valid as evidence.
GPS and geofencing
Every record includes location, and geofences ensure check-ins only happen within the work perimeter.
Works offline
Your employees can clock in even without a connection, and everything syncs once they're back online — no gaps in your records.
Schedules and grace periods
Set shifts, grace periods, and attendance rules by area or employee; late arrivals and absences are flagged automatically.
Reports and evidence 24/7
Complete attendance history in the cloud, ready to present at an inspection or export whenever you need it.
Don't wait until 2027 to comply
Companies that prepare ahead of time arrive fine-free, with full control over overtime and digital evidence on hand. Try it free with 3 employees.
Comience a llevar una mejor gestión de personal hoy.
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