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

Wisconsin 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 Wisconsin make instructors sign a non-compete?

Wis. Stat. 103.465 enforces a non-compete only if it is reasonably necessary to protect the employer and has a reasonable time and territory. It also must not be harsh or oppressive to the employee or contrary to public policy. A covenant that fails any part of this test is void in its entirety, and courts will not trim it down. There’s no income threshold, notice period or statutory maximum length. A tightly drafted clause for a key instructor can survive, but over-broad templates routinely fail.

Can you stop a departing instructor from soliciting your students?

Student and customer non-solicitation clauses are judged under the same strict 103.465 test. Clauses limited to students and families the employee actually worked with, for a short period, are far more likely to be enforced.

Can you stop a departing instructor from recruiting your staff?

In Manitowoc Co. v. Lanning (2018), the Wisconsin Supreme Court held that employee non-solicitation (no-poach) clauses are also governed by 103.465. It struck down a clause covering all employees regardless of whether the former employee knew them. Limit any staff non-solicit to people the employee actually worked with.

What is the minimum wage for instructors in Wisconsin?

$7.25 per hour, the same as the federal rate, with no scheduled 2027 increase. State law preempts cities and counties from setting their own minimum wage.

When do instructors earn overtime?

Time and a half after 40 hours in a workweek, and there’s no daily overtime. Exemptions generally track the federal FLSA white-collar tests. Not confirmed whether Wisconsin’s administrative code sets a different salary level from federal, so check with DWD.

When is the final paycheck due?

Final wages are due by the next regular payday, or within 31 days of separation if earlier, whether the employee is fired or quits (Wis. Stat. 109.03). Commissions are paid under the terms of the commission agreement. Not confirmed whether commissions that can’t yet be calculated may wait, so check with local counsel.

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

The Wisconsin Fair Employment Act bars refusing to hire someone because of an arrest or conviction record. The exception is when the circumstances of the offense substantially relate to the job, or a pending charge does, which offenses involving children usually do for child-facing roles. Ban-the-box covers state employment only, not private employers. Mandatory caregiver background checks apply only if you operate licensed child care. State law preempts local salary-history bans, so none apply to private employers.

Are martial arts instructors mandated reporters of child abuse?

Wisconsin is not a universal-reporting state. The mandated-reporter list in Wis. Stat. 48.981 covers professions such as teachers, school employees, child care providers, health workers and clergy, and does not clearly name private coaches or martial arts instructors. Instructors who are also school employees or licensed child care workers are mandated reporters. Anyone may report to the county child protective services agency or law enforcement, and schools should adopt a policy requiring staff to do so.

What can a dress code or grooming policy require?

There’s no statewide CROWN Act. The Fair Employment Act protects race, religion (requiring reasonable accommodation of religious dress and grooming) and sexual orientation. Gender identity is not listed in the state act, but federal Title VII covers it for employers with 15 or more employees. Some cities, such as Madison and Milwaukee, have broader local ordinances (Not confirmed in detail).

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

The Fair Employment Act protects employees’ use or nonuse of lawful products, such as alcohol and tobacco, off premises during nonworking hours. There are exceptions for bona fide job-related conflicts. Recreational and medical cannabis remain illegal in Wisconsin, so cannabis use isn’t protected.

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

No pay-range posting requirement. No state wage-discussion protection beyond the federal NLRA was confirmed.

What privacy rules apply to student and parent records?

No comprehensive consumer privacy law. The Wisconsin Consumer Data Protection bill (AB 172) failed to pass in March 2026. The data-breach notification statute and federal COPPA apply.

Other Wisconsin rules that catch school owners

No paid sick leave mandate, and local mandates are preempted. Minors 14 and 15 have hour limits. Not confirmed whether Wisconsin still requires work permits for 14- and 15-year-olds, so check with DWD. Employers must provide meal breaks only to minors, not adults.

What to watch in Wisconsin

Comprehensive privacy legislation is likely to be reintroduced in the 2027 session. Watch for any non-compete reform bills.

The bottom line for Wisconsin 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 Wisconsin 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

• Littler: Wisconsin Supreme Court holds employee non-solicitation agreements subject to strict standard
• Manitowoc Co. v. Lanning
• Wisconsin DCF: Mandated reporters
• Wisconsin Legislature: 2025 AB 172 history

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