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

In Minnesota, employee non-competes are void by statute, with narrow exceptions such as the sale of a business.

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

Minn. Stat. § 181.988 makes employee and independent-contractor non-competes void and unenforceable for agreements signed on or after July 1, 2023. The only exception is the sale or dissolution of a business. The ban covers every Minnesota worker regardless of pay. Employers may not use an out-of-state choice-of-law or venue clause to avoid it for workers who primarily live and work in Minnesota, and an employee who sues to enforce these rights can recover attorney’s fees.

Can you stop a departing instructor from soliciting your students?

The statute expressly excludes nonsolicitation agreements, nondisclosure agreements, and agreements restricting use of client or contact lists. So a reasonable clause barring an instructor from soliciting the school’s students is not void under § 181.988. Courts judge it under common-law reasonableness, and continued employment alone may not be enough consideration for a mid-employment agreement (Not confirmed — check with local counsel).

Can you stop a departing instructor from recruiting your staff?

Employee non-solicitation clauses are also excluded from the non-compete ban and are judged for reasonableness. Minn. Stat. § 181.9881 (contracts entered on or after July 1, 2024) separately bans no-hire and non-solicit clauses between businesses in service-provider contracts. It rarely affects a school’s own employees.

What is the minimum wage for instructors in Minnesota?

$11.41 an hour for all employers since January 1, 2026. A 90-day training wage of $9.31 applies to workers under 20. The rate is adjusted for inflation each January (2027 figure Not confirmed — check with local counsel). Minneapolis and St. Paul set higher city minimums; check those cities’ sites for the current rates.

When do instructors earn overtime?

Minnesota’s own overtime law requires time-and-a-half only after 48 hours a week. Most schools are also covered by the federal FLSA, which requires overtime after 40 hours, and the stricter rule applies. Minnesota 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?

An employee who is fired must be paid within 24 hours of demanding it (Minn. Stat. § 181.13). An employee who quits must be paid by the next regular payday, and no later than 20 calendar days after the last day if that payday falls within 5 days (§ 181.14). Employees paid mainly by commission have separate short deadlines under § 181.145.

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

Minnesota’s ban-the-box law (Minn. Stat. § 364.021) covers private employers. They may not ask about criminal records until the applicant has been selected for an interview, or until a conditional offer if there is no interview. The law allows exceptions where another law requires a background check. Youth-serving organizations can request fingerprint-based checks of employees and volunteers through the Minnesota BCA under the state Child Protection Background Check Act (Not confirmed — check with local counsel, on current procedure). Asking about salary history has been banned since January 1, 2024.

Are martial arts instructors mandated reporters of child abuse?

Under Minn. Stat. ch. 260E (§ 260E.06), mandated reporters include education and child care professionals and, per the federal Child Welfare Information Gateway summary, employees and supervisors of private or public youth recreation programs, including athletics. Martial arts instructors who teach children are therefore likely mandated reporters. Report immediately to the county social services (local welfare) agency or to police or the sheriff.

What can a dress code or grooming policy require?

The Minnesota Human Rights Act (employers with 1 or more employees) defines race to include hair traits such as texture and protective styles (2023 CROWN Act). It has protected gender identity as its own category since 2023, along with religion. Grooming and dress codes need religious and gender-identity accommodations.

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

Minn. Stat. § 181.938 bars employers from penalizing employees for using lawful consumable products, which now include cannabis, off-site during non-working hours. Narrow exceptions apply for bona fide job requirements. Cannabis testing of applicants is also limited. Morals clauses that reach lawful off-duty use of these products are restricted.

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

Since January 1, 2025 (Minn. Stat. § 181.173), employers with 30 or more Minnesota employees must include a starting pay range and a general description of benefits in every job posting. All employees are protected when they discuss their wages.

What privacy rules apply to student and parent records?

The Minnesota Consumer Data Privacy Act took effect July 31, 2025. It applies to businesses handling data of 100,000 or more Minnesota consumers, or 25,000 or more if over 25% of revenue comes from selling data. Small businesses are generally exempt but may not sell sensitive data without consent. A typical school falls below the threshold.

Other Minnesota rules that catch school owners

Earned Sick and Safe Time (all employers, since 2024): 1 hour per 30 hours worked, up to 48 hours a year. Minnesota Paid Leave (state family and medical leave insurance) began January 1, 2026, with employer premiums. Workers get a restroom break every 4 hours and a meal break on shifts of 8 hours or more. Youth labor limits apply to 14- and 15-year-old assistants.

What to watch in Minnesota

Watch the rollout of Minnesota Paid Leave in 2026, the January 2027 minimum-wage inflation adjustment, and court decisions on whether instructor non-solicitation clauses are being used as disguised non-competes.

The bottom line for Minnesota schools

Leave non-competes out entirely. In Minnesota a school’s protection rests on a confidentiality agreement, real control of the student database, and a clear rule against diverting students or payments while the instructor is still employed. Minnesota’s ban does not reach non-solicitation agreements, so a reasonable student non-solicit limited to students the instructor actually taught is the restrictive covenant to use.

Sources

• Minn. Stat. § 181.988 (2025) — Covenants not to compete void
• Minimum wage in Minnesota (DLI)
• Beyond Non-Competes: New MN Law Bans Non-Solicitation by Service Providers (Lathrop GPM)
• Mandatory Reporting of Child Abuse and Neglect — Minnesota (Child Welfare Information Gateway)

Also for Minnesota: Martial arts laws in Minnesota · Minnesota 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.