This only applies to being "bumped". There are no protections for flights being cancelled. My own opinion is that their is no difference between being involuntarily bumped and cancelled (due to non weather events), but the laws don't make that distinction. My flight was cancelled because the flight crew scheduled for that flight was over their accumulated flight hours. I was told to come back the next day and that they didn't care that I had to purchase extra meals and lodging for the night (as I said they wouldn't even let me stay in the terminal). If you as a company decide to play the odds as far as overbooking, over scheduling etc to benefit you then I have no sympathy for you in the event that it bites you in the ass.