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

Virginia allows employee non-competes only for workers who clear statutory pay or job-status tests, so most ordinary instructors cannot be bound.

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

Va. Code 40.1-28.7:8 bans non-competes for ‘low-wage employees.’ In 2026 that means anyone earning less than $1,507.01 a week (about $78,365 a year), and since July 1, 2025 it also includes every employee entitled to FLSA overtime, whatever their pay. Most hourly instructors and front-desk staff therefore cannot be bound. Workers paid mainly through commissions or bonuses fall outside the low-wage definition. Employers must post a copy of the statute, and violations carry a civil penalty of up to $10,000. Under SB 170, for agreements signed or renewed on or after July 1, 2026, a non-compete cannot be enforced against an employee fired without cause unless severance or another payment was disclosed when it was signed.

Can you stop a departing instructor from soliciting your students?

The statute lets employers bar even low-wage employees from soliciting customers, but not from serving customers who contact them on their own. A January 2026 Court of Appeals decision indicates that clauses barring active solicitation are not ‘covenants not to compete,’ so they likely do not trigger SB 170’s severance rule.

Can you stop a departing instructor from recruiting your staff?

Not expressly addressed. Commentators expect employee non-solicits to be treated like non-competes under SB 170’s severance requirement, but this is unsettled. Not confirmed — check with local counsel.

What is the minimum wage for instructors in Virginia?

$12.77 per hour from January 1, 2026. Under HB 1/SB 1, signed in 2026, it rises to $13.75 on January 1, 2027 and $15.00 on January 1, 2028, with indexing after that. No local minimums.

When do instructors earn overtime?

Virginia overtime has followed the federal FLSA since July 1, 2022: time-and-a-half after 40 hours a week, federal exemptions and salary test. No daily overtime.

When is the final paycheck due?

Whether the employee quits or is fired, all wages are due by the next regular payday (Va. Code 40.1-29). HB 238 (effective July 1, 2026) classifies earned commissions as wages and adds wage-claim remedies.

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

Virginia’s ban-the-box law covers public employers, not private ones. Virginia law bars all employers from asking applicants to disclose arrests or charges that did not lead to conviction, or simple marijuana possession charges, and record-sealing reforms are being phased in. From July 1, 2026, Virginia bans asking about or relying on salary history. Federal FCRA rules apply to vendors, and the Virginia State Police sex offender registry is public. Not confirmed — check with local counsel.

Are martial arts instructors mandated reporters of child abuse?

Yes, for this audience. Va. Code 63.2-1509 makes athletic coaches, directors and other adults working for or volunteering with a sports organization or team mandated reporters, along with adults at youth recreation programs. Report within 24 hours to the local department of social services or the state child abuse hotline. From July 1, 2027, reports go to the hotline only.

What can a dress code or grooming policy require?

The Virginia Human Rights Act includes hair texture and protective hairstyles in race (CROWN Act, 2020) and covers gender identity, sexual orientation and religion. A 2026 bill, SB 637, lowers the Act’s employer threshold to 5 or more employees (effective date not confirmed).

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

No general lawful off-duty conduct law. Virginia protects employees who lawfully use medical cannabis oil with a written certification, though not on the job. Recreational possession is legal for adults, but off-duty use is not protected. Not confirmed — check with local counsel.

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

From July 1, 2026 (HB 636/SB 215), job postings, including internal postings, must include a good-faith pay range, and employers may not seek or rely on salary history. Penalties run up to $1,000 for a first violation and $5,000 for later ones, with a 15-business-day cure period for posting violations.

What privacy rules apply to student and parent records?

The Virginia Consumer Data Protection Act applies only to businesses handling data on at least 100,000 Virginians (or 25,000 when over half of revenue comes from selling data), so typical schools are exempt. Federal COPPA applies to online collection from children under 13.

Other Virginia rules that catch school owners

Paid sick leave (HB 5/SB 199, signed May 2026) phases in: July 1, 2027 for employers with 50+ employees, January 1, 2028 for 25+, and January 1, 2029 for all employers. Employees earn 1 hour per 30 hours worked, up to 40 hours a year. A state paid family and medical leave program starts payroll contributions on April 1, 2028. HB 238 presumes workers are employees unless they meet IRS independent-contractor criteria (effective July 1, 2026). Minors under 16 need a youth employment certificate.

What to watch in Virginia

The 2027 minimum wage step, the paid sick leave phase-in, PFML contributions in 2028, any changes to the low-wage threshold each year, and the healthcare non-compete ban (effective July 1, 2026). Several 2026 bills had governor amendments, so confirm final text.

The bottom line for Virginia schools

Leave a post-employment non-compete out of ordinary instructor agreements; for that role it is unlikely to be enforceable. Where Virginia 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

• Virginia DOLI: Notice of the Average Weekly Wage for 2026
• DLA Piper: Virginia enacts new restrictions on non-competes and non-solicits (SB 170)
• Littler: Virginia enacts flurry of new wage and hour laws
• Seyfarth: Virginia broadens statewide paid sick leave
• Code of Virginia 63.2-1509 (mandated reporters)
• Paycom: New Virginia employment laws July 2026
• Greenberg Traurig: Virginia expands definition of low-wage employees

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