August 20, 2020
Author: Katie Santos, NCPT, PMA Board of Directors, Vice President


You have a job offer. You are excited about going to work for a new studio. Just as you are beginning to make plans to get into your new job, you are asked to sign a non-compete agreement. Do you have to sign it to work at that studio? What happens if you do not sign or want to ask questions? Why does the studio want you to sign?

The fitness business has always been a competitive industry. Instructors jealously guarded their “client process” and gyms, making sure that members did not leave and go elsewhere. To protect what gyms felt belonged to them, many began to restrict where and how instructors could work during employment and after leaving. These restrictions came in the form of non-compete agreements that instructors were asked to sign.

In the Pilates world jealousy and fear, fortunately, are not as prevalent. If you are asked to sign a non-compete, there are some things you should know about the how and why of these agreements. A non-compete has always been something to think carefully about but is even more critical in today’s climate when jobs may be scarce, and studios may be more fearful than ever.

Non-compete agreements typically impose restrictions that prevent teachers from accepting employment or performing services for competitors (or yourself) for a specific time period during and after employment, or in a defined geographic region. A non-compete may take the form of a clause inside an employment agreement or contract. Some of these non-compete clauses are wrapped tightly with employer protections that ask you to agree not to disclose or take proprietary information such as technical information, business practices, trademarked information, or client records.

Modern non-competes started around the 15th century and originated to protect a master craftsman from losing their apprentice to a competitor, along with all of the expertise the apprentice had been taught. Sound familiar? Centuries later, this practice has trickled down to the movement industry.

Recently, unions, attorneys, and the Department of Justice have been keeping pace with the rise of these agreements, and they have taken action to protect the employee’s right to work. For the most part, they have succeeded in protecting that right. The extent to which non-compete clauses are allowed varies from one jurisdiction to another. Most states now refuse to enforce non-competes, and states such as California have invalidated these agreements altogether because they are infringing on the employee’s right to earn a living. The question is, what does that mean for you?

In some states, you can be asked to sign a non-compete, but most of the time, as an employee, you have the option not to sign and still be able to be hired. In a few states, it is altogether illegal to ask someone who does not have specialized knowledge to sign such an agreement. While we Pilates teachers all know that our skills are exceptional, (and they are), our skills are not seen as those that would do damage to an employer should we leave.

Usually coupled with that non-compete is a covenant called a non-disclosure that states that you will not take a company’s trade secrets when you leave a studio. This is a legitimate ask because we are often privy to valuable proprietary information in a lot of our work. In the eyes of the law, the studio you work for can own the “work product” that you generate when you work for them. If you conceive of a class with a unique name during your employment with a particular studio, the studio has the right to take ownership of it.

So, what are you to do? If you are asked to sign such an agreement, remember that these agreements do not create understanding, they record it. Make sure that you understand and consent to everything in any agreement that you sign. Every item should be explained to your satisfaction, or it should be removed. The contract should be simple and straightforward, it should respect your rights, and the obligations of both parties should be defined. Negotiate clear, precise provisions for what happens when your employment relationship ends. Be wary of any agreements with fixed terms such as “Teacher will not teach within x number of miles for x amount of time” that only benefit the studio and could harm your ability to earn a living.

A mutually beneficial agreement should be struck between the teacher and the studio, one of understanding, clarity, and fairness. Ultimately, it is best when there is a studio culture of openness and trust so that a non-compete is not needed. If there is pressure to sign and a sense that if you leave and work elsewhere you may be sued, you may want to decline the job and look for a better fit.

In most cases, you do not have to sign a non-compete agreement to be hired. Look into your jurisdiction’s rulings, and if needed, contact an attorney.



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