Michigan Employment Law for Martial Arts Schools: Non-Competes, Pay and Hiring Rules

Michigan courts will enforce an employee non-compete only if it protects a legitimate business interest and is reasonable in time, territory and scope.

Can a martial arts school in Michigan make instructors sign a non-compete?

Under the Michigan Antitrust Reform Act (MCL 445.774a), employee non-competes are enforceable if they protect a reasonable competitive business interest and are reasonable in duration, geographic area and type of work. Courts may narrow a clause that goes too far. Michigan has no income threshold and no statutory notice period, so a properly drafted, limited non-compete can bind an instructor.

Can you stop a departing instructor from soliciting your students?

Michigan courts generally analyze student and customer non-solicitation clauses under the same reasonableness standard. They are commonly enforced when limited in time and tied to students the employee actually worked with.

Can you stop a departing instructor from recruiting your staff?

Michigan has no statute on employee non-solicitation clauses. Courts evaluate them for reasonableness.

What is the minimum wage for instructors in Michigan?

$13.73 an hour since January 1, 2026. The minor rate (ages 16–17) is $11.67, the tipped cash wage is $5.49, and the training wage for workers under 20 is $4.25 for their first 90 days. The rate rises to $15.00 on January 1, 2027, with inflation adjustments after that. Michigan law bars cities from setting their own minimum wage.

When do instructors earn overtime?

Time-and-a-half after 40 hours a week, under the Improved Workforce Opportunity Wage Act (employers with 2 or more employees). Michigan has no daily overtime. Michigan is not known to set a salary threshold for exempt employees above the federal one (Not confirmed — check with local counsel).

When is the final paycheck due?

Final wages are generally due by the next regular payday after a firing or resignation (MCL 408.475; Not confirmed — check with local counsel, on exact timing). Commissions are payable under the terms of the written commission agreement.

What background checks can you run on instructors who teach children?

Michigan has no statewide ban-the-box law for private employers. Under the Elliott-Larsen Civil Rights Act, employers may not ask about or keep records of misdemeanor arrests or charges that did not lead to a conviction. Public criminal-history searches are available through the Michigan State Police ICHAT system. A state law also bars cities from passing their own salary-history bans. No Michigan law was found that requires fingerprint checks for private martial arts instructors (Not confirmed — check with local counsel).

Are martial arts instructors mandated reporters of child abuse?

Michigan’s Child Protection Law (MCL 722.623) lists mandated reporters by profession, including school staff, child care providers, counselors and health professionals. Private coaches and martial arts instructors are not clearly on the list (Not confirmed — check with local counsel). Anyone may report to MDHHS Centralized Intake.

What can a dress code or grooming policy require?

Since 2023, the Elliott-Larsen Civil Rights Act treats hair texture and protective hairstyles as part of race (CROWN Act). It also expressly protects sexual orientation, gender identity and expression, and religion. ELCRA covers employers with even one employee, so dress codes must allow religious and gender-identity accommodations.

How far can a morals or conduct clause reach into off-duty life?

Michigan has no general law protecting lawful off-duty conduct. The state’s recreational marijuana law expressly lets employers refuse to hire or discipline workers for marijuana use. Morals clauses are generally allowed.

Do you have to disclose pay or allow staff to discuss it?

Michigan has no pay-range posting requirement. State law (MCL 408.483a; Not confirmed — check with local counsel) bars employers from requiring employees to keep their wages secret.

What privacy rules apply to student and parent records?

Michigan has no comprehensive consumer privacy law in force. Its data breach notification law applies to businesses holding residents’ personal information.

Other Michigan rules that catch school owners

Earned Sick Time Act (effective February 21, 2025, as amended): employers with 11 or more employees provide up to 72 hours of paid sick time a year. Employers with 10 or fewer must provide up to 40 hours of paid sick time a year starting October 1, 2025. Minors under 18 must get a 30-minute break after 5 hours of work. Youth employment rules apply to teen assistant instructors.

What to watch in Michigan

The minimum wage rises to $15.00 on January 1, 2027, and the tipped wage keeps phasing up. Watch for further amendments to the Earned Sick Time Act and for bills introduced to restrict non-competes (Not confirmed — check with local counsel, on status).

The bottom line for Michigan schools

If you use a non-compete at all, reserve it for senior roles with a real legitimate interest, and keep time, territory and activity narrow. Where Michigan law allows it, a narrow student non-solicitation clause limited to students the employee actually taught, a confidentiality agreement, and real control of the student database protect a school far better.

Sources

• Michigan Minimum Wage (LEO Wage & Hour)
• Michigan Minimum Wage Increases Effective January 1, 2026 (Bodman)
• Michigan Minimum Wage Act page

Also for Michigan: Martial arts laws in Michigan · Michigan membership contracts

What every martial arts school staff package should contain

• Offer or employment agreement: the legal employer, the role and duties, workplace, pay, employment status and termination terms, reviewed against local rules. U.S. at-will language does not belong in a Canadian contract.
• Compensation schedule: hourly or salary terms, commissions and bonuses, and exactly when each is earned and paid. Record all working time, not only time on the mat. See instructor pay structures and overtime.
• Appearance and conduct policies: functional uniform, hygiene and safety standards with a written accommodation process. See the dress code and grooming guide.
• Child-protection policy: boundaries, private communications, transport, supervision and reporting. See the conduct clause guide and background checks for instructors.
• Confidentiality and data-security agreement: student records, CRM access, permitted use, return and deletion, and protected-disclosure exceptions (in the U.S., the federal DTSA whistleblower-immunity notice). See student data and trade secrets.
• Restrictive-covenant addendum: only what local law permits, usually a narrow student or staff non-solicitation clause; a non-compete only in exceptional cases. See non-compete laws by state and non-solicitation agreements.

Planning for a departure? Read When an instructor leaves: protecting students and records. Every state and province is indexed in the Martial Arts Employment Law Center.

Before you act on this

This article provides general information and is not legal advice. Employment, wage, human-rights, privacy and restrictive-covenant laws change, and their application depends on the exact wording of an agreement, the employee’s duties and pay, where the work is done and when the agreement was signed. Confirm the current statute, regulations and agency guidance, and take advice from a lawyer admitted in the relevant state or province, before drafting, changing or enforcing an employment agreement. Corrections: see our editorial policy.