70 Former Loreto Officials Sue City Hall Over Severance Pay

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Seventy former municipal employees in Loreto have filed labor lawsuits against the city government demanding severance payments, Mayor Paz del Alma Ochoa Amador revealed this week. The claimants are mostly senior officials, including directors, secretaries, and department heads from previous administrations.

Of the 70 cases, 20 alone represent claims totaling nearly 4 million pesos (about $200,000 USD). The lawsuits are pending before the Bureaucratic Tribunal, and some may not be resolved until December 2026, according to the mayor.

Mayor Flags Suspicious Pattern in Claims

Ochoa Amador pointed to what she called a suspicious pattern across the filings. All 70 claims are nearly identical, with each former official demanding payment for the same number of overtime hours. The mayor noted this was unusual given that the claimants held senior trust-based positions (known as “cargos de confianza” in Mexican labor law), which typically carry different labor protections than rank-and-file workers.

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Under Mexican law, trust-based employees serve at the discretion of the administration that appointed them. They are generally not entitled to the same severance and overtime protections as unionized or base workers. The cookie-cutter nature of the claims, the mayor said, raises questions about whether the lawsuits were coordinated.

Budget Pressure on a Small Municipality

Loreto, a coastal town of roughly 20,000 residents on the Sea of Cortés, operates on one of the smallest municipal budgets in Baja California Sur. A payout of 4 million pesos on just 20 of the 70 cases could strain resources earmarked for public services and infrastructure. If the remaining 50 cases carry similar price tags, the total liability could climb significantly higher.

The mayor described the lawsuits as part of a broader set of conflicts inherited from prior administrations. She said her government is committed to transparency while working to resolve the legal disputes.

Cases Could Drag On Through 2026

The Bureaucratic Tribunal process in Baja California Sur is notoriously slow. With some cases potentially stretching to late 2026, Loreto’s current administration faces prolonged fiscal uncertainty. The outcome could affect the municipality’s ability to fund road maintenance, water infrastructure, and other services that residents and the growing expat community depend on.

Ochoa Amador took office as part of the most recent municipal government changeover. Loreto has seen steady growth in tourism and foreign property investment in recent years, putting additional demands on city services.

This story was first reported by BCS Noticias.

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