Employers with operations in Mexico should begin preparing for new mandatory electronic timekeeping requirements scheduled to take effect January 1, 2027. As part of Mexico’s broader working-time reforms, employers will be required to maintain auditable electronic records that provide labor authorities greater oversight of employee working hours, making electronic timekeeping an increasingly important wage-and-hour compliance tool. 

A key challenge for employers is that Mexico’s Secretariat of Labor and Social Welfare (STPS) has not yet issued implementing regulations specifying exactly what compliant systems must include. Among the open questions are whether systems will need cloud-based storage, geolocation capabilities for remote workers, or safeguards or certifications demonstrating that time records cannot be altered. 

The change is particularly important because Mexican labor law generally places the burden on employers to establish employees’ working hours in labor disputes. This means that unreliable or easily modified records may have limited evidentiary value, potentially increasing exposure in overtime claims. Administrative penalties for noncompliance may also exceed MXN $500,000 per workplace. 

Employers with Mexico operations should use the remaining months before implementation to: 

• Assess current timekeeping systems to determine whether they provide reliable, auditable electronic records and identify systems that rely heavily on manual adjustments.
• Review timekeeping policies and practices, including procedures for missed punches, compensable breaks, after-hours work, and work performed outside the official timekeeping system.
• Prepare managers and supervisors to consistently enforce timekeeping requirements, particularly when communicating with employees through messaging apps or other platforms outside normal working hours. 

Continued monitoring of STPS guidance is also recommended. Once the implementing regulations are issued, employers should again review existing systems and policies against the final technical requirements well ahead of the January 1, 2027 effective date.