The plaintiff, a US citizen, worked for Legend USA in California under contracts containing arbitration clauses.
He later relocated to Ontario to work for Legend Canada without signing a new contract.
After being terminated, he sued both companies for wrongful dismissal and unpaid overtime under the Employment Standards Act.
The defendants moved to stay the action based on the California arbitration agreements.
The court dismissed the motion, finding no arbitration agreement existed with Legend Canada, and the agreement with Legend USA did not cover the Ontario employment.
Furthermore, the court noted the arbitration clause would be invalid as an impermissible contracting out of the Employment Standards Act.