X Important Labor Law Differences between America and Canada for salaried Workers
America and Canada share more than just a common border. The parallels in terms of culture, values and tradition for America and Canada cannot be stated further.
Other than cities like Seattle and Vancouver being mere photocopies of each other, Canada also shares time zones, cuisines and most important corporates and businesses linked by PEOs.
Labour laws, however, are an exception to this rule. When it comes to labour laws and protections, especially for salaried workers, there is a notable difference between the two nations.
Some of the differences in labour laws include:
Jurisdiction
American labour laws are set by the federal government and are a federal issue for all the 50 states. Labour laws in Canada, however, are a provincial issue.
This means that almost 90% of the Canadian workforce is regulated by their respective provinces and 10% by the federal government.
The United States has the National Labor Regulations Board (NLRB) that regulates a large percentage of the unionized labour force.
Maternity Leave
A Canadian worker is entitled to 12-18 months of unpaid leave, depending on the province, to tend to a recently born child. The employer can temporarily replace the worker but is required by law to re-employ her once the leave is over.
The United States, however, does not have a federally mandated maternity leave; the issue is left for the states to decide individually. Only Rhode Island, California and New Jersey have a mandated leave.
Universal HealthCare
Due to the availability of Universal Healthcare in Canada, employers are not required by law to pay for their employee’s health care. This burden is shifted to the government except for a few provinces such as Manitoba, Ontario and Quebec.
In the States under the Affordable Care Act, employers with more than 50 full-time workers, are required to provide healthcare for nine-tenths of their workforce or face IRS fines.
Employment at will
In Canada, an employer can only fire an employee after giving them 1- 3 weeks’ notice. An employer cannot terminate an employee’s contract at will without prior notice.
In the United States, an employer is under no obligation to give prior information before terminating a contract.
Statutory Holidays
Workers in Canada are entitled to ten paid holidays each year. The United States, however, does not guarantee paid holidays to its workers.
The average American in the private sector gets about six paid holidays each year.
Vacation Periods and Pay
In terms of paid vacations, the United States does not federally guarantee its Workses paid vacations, the only developed nation not to do so.
Canada, on the other hand, is just a few yards ahead of the U.S in the vacation race. Canada mandates that its employees get two weeks of paid vacation each year.
Overtime
The overtime laws in Canada require the employer to pay 1.5 times the usual wage in most provinces. This applies to employees who work more than a 44-hour workweek.
In America, on the other hand, an employee is eligible for overtime if they earn less than $23 660. If an employee makes more than that, overtime is left to the will of the employer.
Workplace Privacy
Workplace Privacy is strictly enforced in all the Provinces in Canada. An employer is not allowed to perform invasive practices on their employees, such as drug and alcohol tests.
Workplace privacy laws in the United States are, however loosely enforced, employers in some states are known to perform drug tests on their employees.
Adjustments to Post Retirement Welfare Benefits
Creating modifications to retirement benefits is almost impossible in Canada, as it involves back and forth with the Unions and Collective bargaining agreements.
In the United States, however, these are comparatively easier if the employer had prior agreements with the employees.
Non-Solicitation/Non-Competition
Non-Solicitation and Non-Competition laws are non-enforceable in Canada. Most Jurors in Canada view these laws as obstructive to the competition.
In the United States, however, these clauses can be passed with relative ease compared to their northern neighbours.
Bright R is one of the most efficient ways to hire in Canada. For more information on Canadian Labor Laws or to make Canadians and their work ethic part of your labour force, Contact Us Today and let us be part of your story.
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