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

Illinois 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 Illinois make instructors sign a non-compete?

Under the Illinois Freedom to Work Act (820 ILCS 90), a non-compete is void unless the employee’s actual or expected annual earnings exceed $75,000 (rising to $80,000 on January 1, 2027, then $85,000 in 2032 and $90,000 in 2037). Even above the threshold you must advise the employee in writing to consult a lawyer, give at least 14 calendar days to review, provide adequate consideration (generally two years of continued employment after signing, or extra money or benefits), and show a legitimate business interest. The agreement is also void for employees laid off or furloughed for COVID-type reasons unless you pay base salary during the restricted period, and an employee who beats an enforcement suit can recover attorney fees. A typical instructor or front-desk employee earns well under $75,000, so a non-compete for them is almost certainly void.

Can you stop a departing instructor from soliciting your students?

Customer (student) non-solicitation clauses are void for employees earning $45,000 a year or less (rising to $47,500 on January 1, 2027, $50,000 in 2032 and $52,500 in 2037). Above that level they must meet the same notice, 14-day review, consideration and reasonableness rules as non-competes. Many part-time and full-time instructors fall below $45,000, so a student non-solicit may be unenforceable against them.

Can you stop a departing instructor from recruiting your staff?

The Act treats a clause barring an employee from soliciting your other employees as a ‘covenant not to solicit,’ so it carries the same $45,000 threshold (rising to $47,500 in 2027) and the same notice and review rules. Confidentiality agreements and trade-secret protections are not limited by the Act.

What is the minimum wage for instructors in Illinois?

The statewide minimum wage is $15.00 per hour (in effect since January 1, 2025; $9.00 for tipped workers), with no further scheduled statewide increase. Chicago’s minimum rose to $17.05 per hour on July 1, 2026 for employers with four or more employees ($12.96 for tipped workers), and Cook County’s rose to $15.40 per hour ($9.25 tipped) where it applies. Chicago and Cook County adjust annually each July 1.

When do instructors earn overtime?

Overtime at 1.5 times the regular rate applies after 40 hours in a workweek (Illinois Minimum Wage Law, 820 ILCS 105). There is no daily overtime and no state salary threshold for exempt employees above the federal level. Illinois also requires a 20-minute meal break for shifts of 7.5 hours or more and a day of rest each workweek under the One Day Rest in Seven Act.

When is the final paycheck due?

Under the Illinois Wage Payment and Collection Act (820 ILCS 115), final pay is due at separation if possible and no later than the next regular payday, whether the employee quits or is fired. Earned commissions and bonuses must be paid, and earned, unused vacation must be paid out; ‘use it or lose it’ forfeiture of earned vacation is not allowed.

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

The Job Opportunities for Qualified Applicants Act (820 ILCS 75) bars private employers with 15 or more employees from asking about criminal history until the applicant has been selected for an interview or, if there is no interview, until a conditional offer, unless a law requires the screening. The Illinois Human Rights Act forbids using arrest records and requires an individualized assessment, a written preliminary notice and a chance to respond before rejecting someone over a conviction. Illinois also bans asking applicants about salary history. The state’s Biometric Information Privacy Act requires written consent before using fingerprint or face scans for time clocks or check-in; whether any state law specifically requires fingerprint checks for private martial arts instructors is not confirmed — check with local counsel.

Are martial arts instructors mandated reporters of child abuse?

Illinois uses a list of mandated reporter professions in the Abused and Neglected Child Reporting Act (325 ILCS 5/4) rather than a universal rule. The list is understood to include personnel of recreational or athletic programs and facilities, which would likely cover martial arts instructors, but the exact wording was not re-verified for this page — check with local counsel. Reports go to the DCFS hotline at 1-800-25-ABUSE (1-800-252-2873), and anyone may report.

What can a dress code or grooming policy require?

Illinois’ CROWN Act, effective January 1, 2023, defines race to include hair texture and protective hairstyles such as braids, locks and twists. The Illinois Human Rights Act covers gender identity and religion, so uniform and grooming rules should allow religious dress or grooming and gender-neutral standards where possible. Safety-based rules (no jewelry on the mat, hair tied back) are usually defensible if applied evenly and with religious accommodation.

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

The Right to Privacy in the Workplace Act (820 ILCS 55) bars discipline for lawful use of lawful products off duty and off premises, which includes recreational cannabis, though you can still enforce drug-free workplace and impairment rules. Morals clauses tied to lawful off-duty behavior should be drafted narrowly. Illinois also limits mandatory employer meetings about political or religious matters (captive-audience law, effective 2025) — exact scope not re-verified, check with local counsel.

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

Since January 1, 2025, employers with 15 or more employees must include the pay scale and a general description of benefits in job postings for Illinois-based or Illinois-reporting jobs (Equal Pay Act amendment). Illinois law also protects employees who discuss their wages. Salary-history questions are prohibited.

What privacy rules apply to student and parent records?

Illinois has no comprehensive consumer privacy law, but its Biometric Information Privacy Act applies to businesses of any size. If your school uses fingerprint or facial-recognition check-in for students or staff, you need a written policy, notice and signed consent first, and lawsuits under this law have been costly.

Other Illinois rules that catch school owners

The Paid Leave for All Workers Act (820 ILCS 192) has required up to 40 hours of paid leave a year for any reason since 2024; Chicago and Cook County have their own paid leave ordinances that replace the state law there (Chicago requires both paid sick leave and paid leave). A new Child Labor Law took effect January 1, 2025, governing teen assistant instructors’ hours and work permits — details not re-verified, check with local counsel.

What to watch in Illinois

Non-compete and non-solicit earnings thresholds step up on January 1, 2027 ($80,000 and $47,500). House Bill 4221 in the 104th General Assembly proposes banning non-competes for physicians and other health professionals; its passage status was not confirmed. Chicago and Cook County minimum wages rise each July 1, and Chicago’s tipped-wage credit is being phased out.

The bottom line for Illinois schools

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

• Illinois General Assembly: HB4221 text showing 820 ILCS 90/10 thresholds
• Proskauer: Low-Wage and Employee Classification Limits on Non-Compete Agreements
• Amundsen Davis: Chicago and Cook County Minimum Wage Increases Take Effect July 1
• HiveDesk: Illinois Minimum Wage 2026
• Vorys: Illinois, Louisiana, Maine and Tennessee Now Prohibit Natural Hairstyle Discrimination

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