The United States and Canada have many cultural similarities, but when it comes to the law, the two countries often protect individuals differently. While Canada has a number of legal rights written into their laws that Canadians experience on a day-to-day basis, the United States often lacks similar national legal protections.
Instead, American citizens are often only protected by these rights in certain situations or places, such as only where employers choose to offer them, or by a patchwork of various state laws. So here are 10 legal protections in Canada that many Americans don’t experience.
No hidden fees on cell phone plans
US cell phone customers are pretty much at the mercy of their carrier’s individual rules, but in Canada a national law called the Wireless Code sets strict ground rules that all providers must follow.
It has (effectively) killed three-year contracts, capping all cell phone plans at two years so you don’t get stuck paying for an outdated phone forever. It also means all mobile devices are sold “unlocked” so you can switch carriers at any time without paying a fee or installing special software to make it work.
There’s even a mandatory 15-day trial period when you can cancel your plan and return your phone for a full refund if the coverage is not what you expected.
Guaranteed paid vacation
The U.S. is the only advanced economy in the world without a federal law requiring some amount of paid vacation. However, every province in Canada requires at least two weeks of paid vacation per year, which increases to three weeks after several years with the company.
Most importantly, this is a legal right, not a “perk” that your boss can withhold or award on the basis of performance.
Privacy over personal data
Canada has a federal privacy law known as PIPEDA. It forces businesses to adhere to a set of rules about how they collect and use your personal data. The U.S. has a jumble of different state laws that are all over the map when it comes to whether or not you can ask a company for the data they have on you and demand they delete it.
Canadian consumers also have a “reasonableness” standard that companies must adhere to when it comes to the use and retention of personal data, a standard that is much more difficult for corporations to circumvent.
Frivolous lawsuits
Canada has a “loser pays” system for legal fees. This is a small but meaningful protection against being sued for “nothing”.
In the U.S., pretty much anyone can sue you for almost anything. And even if you win, you’re usually still stuck paying your own enormous legal bills. In Canada, if someone files a meritless lawsuit against you and loses, the court will often order them to pay you a portion of those legal fees.
Guaranteed paid maternity/parental leave
In the U.S., certain workers have a right to up to 12 weeks of unpaid leave, through the FMLA, whereas in Canada, employees are legally entitled to up to 18 months of job-protected leave with government supported income.
The benefit comes from the Employment Insurance (EI) system (into which most workers pay) instead of the employer’s pocket. It is 55% of what you earn (up to a maximum) for a “standard” leave or 33% for the maximum 18-month extended leave.
Protection from surprise medical billing
In the U.S., even patients with insurance often receive “surprise billing” from doctors who were out of network that they never consented to. But thanks to the Canada Health Act, the phenomenon is mostly non-existent in Canada.
Canadian law guarantees that for all medically necessary services, you will not be “extra-billed” or user-fee charged by a doctor or hospital. So you can walk into any emergency room in the country knowing that you will receive free health care & a simple clerical mistake or the “network status” of a particular surgeon won’t cause you a life-ruining bill.
Protection against “At-Will” dismissal
In “at-will” employment in most of the U.S., you can be fired at any time, for no reason, with no notice, and no pay. In Canada, the law states that your employer must give you “reasonable notice” or a payout when they let you go without significant cause, such as theft.
This is usually based on length of service, which means they have to give you several weeks or even months of lead time. If they don’t want you to stick around, they have to pay you for that time instead, giving you a mandatory cushion. This prevents the complete, instantaneous loss of income that is standard under the American “at-will” employment system.
Uniform criminal law
In the U.S., something can be a felony in one state and perfectly legal just across the state border. It can lead to accidental arrests and a massive amount of legal confusion.
In Canada, however, there is one single Criminal Code that governs all provinces from east to west, meaning that your legal rights and responsibilities are no different if you cross a provincial boundary than if you cross your own property line. You don’t have to fear being made a criminal by a “small” local ordinance in a different part of the country.
Caps on interest rates for payday loans
The United States allows most states to set whatever rules they want on lending practices, including interest rates for payday loans that can exceed 400% annual interest.
Canada’s Criminal Code sets a cap on payday lending that provinces have built upon with further consumer protection. Canadian provinces have significantly strengthened this law in recent years, creating a de facto ban on “debt traps” for the most vulnerable in Canadian society.
So what might have been an impossible debt in an American state quickly becomes manageable in Canada.
Truth in advertising standards
Canada has “truth in advertising” standards that force businesses to be accountable for misleading or false claims (which, in American law, are sometimes called “puffery”).
While a Canadian might be able to hold a company to a clear promise in writing or over the airwaves, in the U.S., courts have allowed many of these same statements to fly as vague, overblown promises with no basis in fact.
Sources: Please see here for a complete listing of all sources that were consulted in the preparation of this article.
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