don't frighten the horses

Mexico is a rumor mill.

Every time I open  my message boards, I discover some sort of Mexidrama that seems to be designed solely to frighten tourists or expatriates.

You know the genre. "AMLO is going to ask the Supreme Court to hold the statute unconstitutional that allows foreigners to own property in the 'restricted zone,' and we will all lose our property." [Pull out Bic. Light hair. Repeat until the evil thoughts stop.]

In fact, I did hear that one last week. But the reality is a bit skewed. It had nothing to do with AMLO, and I know the source of the rumor. I doubt there are such things as true rumors. But that one is false.

But I did hear an AMLO rumor yesterday that is partially factual, and designed to create hysteria amongst anyone who has ever employed domestic help in Mexico. Here is how it goes.

The Mexican Supreme Court has issued an injunction ordering the Mexican Social Security system (IMSS) to amend its rules to include domestic workers. Almost all employees in Mexico are required to enroll their workers in the social security system -- a unified program that provides health care, disability payments, and a minimal pension. In northern terms, it is as if employer-provided health care, workers' compensation, and social security were all rolled into one package.

Until now, domestic workers were excluded from the program. Housekeepers. Maids. Cooks. They were all outside the protection of the IMSS program.

No longer. The Supreme Court declared the exclusion to be unconstitutional and ordered IMSS to create a pilot program to be implemented early in 2019 to cover domestic workers.

Considering all that the program provides, its costs is minimal -- about 2.6% of the worker's total compensation. Paid by the employer.

But, before you run off to your accountant to discover how much you are going to owe, you should take a deep breath and wait. There are still too many questions left unanswered. And those answers will have to wait until the rules are issued.

Here are some.

Will all domestic workers be covered? Or will the system apply to only full-time employees?

Will they apply to what have been traditional "independent contractors?" Like the pool guy who stops by three times a week.

Will payments be retroactive for current and former employees? Or solely prospective?

No one yet knows because there are no rules.

When the rules are issued, I recommend that anyone who hires help to take a close look at how they will apply to your situation.

It is true that plenty of local businesses flout the law right now. And they often do it to their cost. Disgruntled workers have won settlements that have been quite costly to employers. In one case, a judgment caused a restaurant to shut down permanently.

Like most agencies, IMSS is facing a fiscal crisis. So, it is looking for non-complying employers to help fill its coffers.

There is a second part to this story. AMLO has floated an idea to double the Mexican minimum wage. His economic advisers will undoubtedly talk him into a lower figure to avoid the inevitable destruction of entry-level jobs. But the minimum wage is going up.

All of this is good news for Mexican workers. At least, those who will not lose their positions because of cost increases. For most northerners, the cost of domestic help will still be a bargain.

So, here is my advice. Calm down and wait for the rules to be issued. Then, talk to your accountant, and do the right thing by the people who help make your life in Mexico more pleasant.

Here is another reminder, I am certain you have all paid your staff their annual aguinaldo. If not, you are late. Do it today.

I think I hear the horses pawing the ground.