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Do I have a right to overtime pay while working in Canada?

Do I have a right to overtime pay while working in Canada?

Full question:

I am working in Canada for a company based out of north carolina. My contract states that we are binded by all north carolina labor laws here in canada. He has a no competition clause that i can't do business or any such advertising for his clients which is Suncor energy. I left his company and i am working for another contractor here at Suncor. I am not working for Suncor though. Also i am an API inspector working in the oil refinery here. He is paying a straight rate with no overtime. I read the north carolina law that he should be paying overtime after 40 a week. I work 77 hours a week and i have been working at this job for a year for this company. Do i have a right for compensation? I thank you for your speedy reply

Category: Employment
Subcategory: NonCompete Agreement
Date: 04/07/2025
State: Texas

Answer:

The determination of your right to overtime pay will depend on the specific facts and documents involved, and it may be possible that you are exempt from overtime requirements. If you have violated the non-compete agreement, your former employer may argue 'unclean hands' to prevent you from recovering overtime. The 'clean hands doctrine' means that a party seeking equitable relief must not have engaged in wrongdoing related to their claim.

Key considerations include the relationship between your current contractor and your former employer, as well as whether your current contractor is a client covered by the non-compete agreement. Courts generally enforce non-compete agreements if they are reasonable in terms of time and geographic scope, and if they protect legitimate business interests without being overly restrictive.

In North Carolina, the relevant statute regarding overtime is G.S. 95-25.14, which outlines exemptions from minimum wage and overtime requirements. You may want to review this statute to see if it applies to your situation. If you believe you are entitled to overtime pay, you may need to consult with a legal professional to assess your case in detail.

Users can search for state-specific legal templates at .

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

Can a non-compete be enforced in another country?

Enforcement of a non-compete agreement in another country can be complex. Generally, the enforceability depends on the laws of the jurisdiction where the agreement is being enforced. If the agreement is governed by North Carolina law, it may not automatically apply outside the U.S. Courts in other countries may not recognize or enforce such clauses, especially if they conflict with local labor laws. It's important to consult a legal expert familiar with both jurisdictions.

What voids a non-compete clause?

A non-compete clause can be voided if it is deemed overly broad in scope or duration, or if it does not protect a legitimate business interest. Additionally, if the employee was not provided adequate consideration (like compensation) for signing, or if the agreement was signed under duress, it may also be invalid. Courts often look for reasonableness in terms of time and geographic area when evaluating these clauses.

Is a non-compete clause enforceable in Canada?

In Canada, non-compete clauses can be enforceable, but they are subject to strict scrutiny. Courts will assess whether the clause is reasonable in terms of duration, geographic scope, and whether it protects legitimate business interests. If deemed too restrictive, a court may refuse to enforce it. The specifics can vary by province, so it's advisable to consult legal counsel familiar with local laws.

Is a non-compete clause enforceable in North Carolina?

Yes, a non-compete clause can be enforceable in North Carolina if it meets certain criteria. It must protect a legitimate business interest, be reasonable in duration and geographic scope, and not impose an undue hardship on the employee. Courts in North Carolina generally uphold these agreements if they are carefully drafted and serve a valid purpose.

Are non-compete clauses enforceable in Canada?

Yes, non-compete clauses can be enforceable in Canada, but their enforceability depends on specific factors. Courts will evaluate the reasonableness of the clause regarding duration, geographic scope, and the protection of legitimate business interests. If a clause is found to be overly restrictive, it may be deemed unenforceable. Consulting a legal expert is recommended for clarity in specific cases.

Can an employer stop you from working for a competitor in Canada?

In Canada, an employer can attempt to stop you from working for a competitor through a non-compete clause. However, such clauses must be reasonable and not overly restrictive to be enforceable. Courts will assess the validity of the clause based on its scope and the legitimate interests of the employer. If you are facing such a situation, seeking legal advice would be beneficial.