Non-Compete Laws for Martial Arts Instructors: Every State and Province (2026)

A non-compete is the clause school owners ask about first and the one that protects them least. In 2026 it is void for ordinary employees in four states, restricted by pay or job status in fourteen more and the District of Columbia, banned by statute in Ontario and Wyoming, and everywhere else enforced only when a court is satisfied it is no broader than a real business interest requires.

Is there a nationwide ban on non-competes in the United States?

No. The Federal Trade Commission’s 2024 rule banning most non-competes never took effect. A federal court set it aside, and in September 2025 the FTC moved to dismiss its own appeals and accepted the vacatur. The agency now pursues non-competes case by case. For a martial arts school, state law decides whether a non-compete can be enforced, and state law has moved quickly in the other direction: Minnesota banned employee non-competes in 2023, Wyoming in 2025, and Washington’s legislature voted in 2026 to void them from June 30, 2027.

Why is a non-compete a weak foundation for a school?

Courts in almost every jurisdiction start from the position that people are entitled to earn a living in their trade. Teaching martial arts is a trade. A clause that stops an instructor teaching anywhere within ten miles for two years asks a judge to keep someone out of work, and in many states the judge will not rewrite an over-broad clause but strike it entirely. Even where the clause survives, the school must prove a legitimate interest beyond simply not wanting the competition, and it must pay a lawyer to do it.

Meanwhile the losses that actually hurt a school come from somewhere else: a copied student list, renewal dates used to time a pitch, inquiries quietly redirected, a Facebook group that belongs to the instructor rather than the school. Those are addressed by confidentiality agreements, data controls and anti-diversion rules, which are enforceable in nearly every jurisdiction whether or not a non-compete is. Students remain free to choose where they train.

How do the states group?

• Banned for employees (4): California, Minnesota, North Dakota and Oklahoma void employee non-competes, with exceptions such as the sale of a business. Wyoming joined them for agreements signed on or after July 1, 2025, with exceptions for executives, managers and trade secrets.
• Pay or job-status test (14 plus DC): Colorado, the District of Columbia, Georgia, Idaho, Illinois, Maine, Maryland, Massachusetts, Nevada, New Hampshire, Oregon, Rhode Island, Virginia and Washington allow non-competes only above an earnings threshold or for particular kinds of employee. Most hourly instructors fall below the line.
• Reasonableness test (the rest): courts enforce a non-compete only if it protects a legitimate interest and is reasonable in time, territory and scope. Some of these states, such as Florida and Arkansas, are employer-friendly; others, such as Nebraska, Wisconsin and Delaware, strike over-broad clauses outright.

Which state rules do school owners most often get wrong?

• Colorado: a non-compete requires 2026 pay of at least $130,014 and a trade-secret purpose; a student non-solicit requires at least $78,008.40. A separate signed notice is mandatory, and presenting a void clause carries a $5,000 penalty per worker.
• Illinois: non-competes are void at or below $75,000 a year and non-solicits at or below $45,000, with a 14-day review period and a written advice-of-counsel notice. Both thresholds rise on January 1, 2027.
• Minnesota: the ban covers non-competes only. Non-solicitation and confidentiality agreements are expressly excluded, which makes them the tool to use.
• Virginia: since July 1, 2025 any employee entitled to overtime is a low-wage employee who cannot be bound, whatever the pay.
• Washington: 2026 thresholds apply now; enacted amendments void essentially all non-competes from June 30, 2027 and cap non-solicits at 18 months.
• Florida: the 2025 CHOICE Act adds a stronger regime for employees earning twice the county mean wage. Ordinary instructors do not qualify, but Florida’s general statute still enforces reasonable clauses.
• Maine: non-competes are banned at or below 400% of the federal poverty level and require disclosure before the offer.

What about Canada?

Ordinary martial arts schools fall under provincial or territorial employment standards, not federal labour law. Ontario’s Employment Standards Act bans employee non-competes in agreements made on or after October 25, 2021, with exceptions for the sale of a business and senior executives. Quebec’s Civil Code (art. 2089) requires a written non-compete limited in time, place and type of work, and art. 2095 bars the employer from relying on it after dismissing the employee without a serious reason. Everywhere else the common law applies: the Supreme Court of Canada in Shafron v. KRG (2009) held that restraints on employees receive close scrutiny and that an ambiguous clause will not be rewritten by the court. A narrow non-solicitation clause is almost always the better tool. And U.S. at-will language does not belong in a Canadian contract at all.

What should a school use instead?

1. A confidentiality and data-security agreement that defines the student information the school actually keeps secret.
2. Real controls on the CRM: individual logins, access by role, restricted exports, logged activity and prompt removal at separation.
3. A clear rule against diverting students, inquiries or payments while still employed, which is actionable in most places without any non-compete.
4. Where local law allows, a student non-solicitation clause limited to students the employee actually taught, for a defensible period, that distinguishes targeted solicitation from ordinary advertising.
5. School ownership of the website, Google Business Profile, social accounts, phone numbers and parent groups.

The non-solicitation guide and the student data guide cover these in detail.

Non-compete status by state

Non-compete status by province and territory

Frequently asked questions

Can I make my martial arts instructors sign a non-compete?

Only where state or provincial law allows it for that employee. In California, Minnesota, North Dakota, Oklahoma, Wyoming (for new agreements) and Ontario, generally no. In fourteen states and DC, only above a pay or job-status threshold most instructors do not meet. Elsewhere, only if the clause is narrow and protects a real interest.

Does getting an applicant to sign before they start make a non-compete valid?

No. Signing does not make an unlawful clause enforceable. Timing does matter: several states require advance notice or a review period, and some require extra consideration for current employees.

Is a non-solicitation clause the same as a non-compete?

No. A non-solicitation clause stops targeted efforts to take students or staff; a non-compete stops someone working in the field at all. Many states that restrict non-competes treat non-solicits separately, and some, such as Minnesota, expressly exclude them from the ban.

What happens if I put an unenforceable non-compete in my agreement?

At best it does nothing. In Colorado, Illinois, Virginia, Washington, Maine and other states, presenting or trying to enforce a void clause can bring statutory penalties and the employee’s legal fees.

If an instructor leaves and students follow, have I been wronged?

Not by that fact alone. Students may choose where they train. A claim usually needs evidence of something more: misuse of confidential records, diversion while still employed, or breach of a valid non-solicitation clause. See When an instructor leaves.

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.