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Per-Class Pay and Minimum Wage: Payroll Compliance for Fitness Studios
Fitness studios often pay instructors per class. When total per-class earnings divided by actual hours worked falls below minimum wage, the studio owes additional wages -- whether or not it tracks those hours.
Paying instructors per class is simple from a scheduling standpoint -- $25 for a 45-minute class, $40 for a 60-minute class, and so on. The problem is that "per class" pay triggers minimum wage compliance analysis: the total compensation paid divided by total hours worked must meet or exceed the applicable minimum wage. Most studios do not track this, which means they do not know whether they are in compliance.
How to Calculate the Minimum Wage Floor for Per-Class Instructors
Here is the calculation process for each pay period:
Add up all per-class earnings for the pay period.
Add up all compensable hours worked -- including class time, required setup/cleanup, and required meeting time.
Divide total earnings by total hours. This is the effective hourly rate.
Compare the effective hourly rate to the applicable minimum wage (state or federal, whichever is higher).
If the effective rate is below minimum wage, calculate the shortfall (minimum wage × hours worked − per-class earnings) and add it to the paycheck as a minimum wage supplement.
A Worked Example
| Item | Example |
|---|---|
| Classes taught this week | 6 classes × $25/class = $150 |
| Class minutes (6 × 60 min) | 360 minutes = 6.0 hours |
| Required setup/cleanup (6 × 15 min) | 90 minutes = 1.5 hours |
| Total compensable hours | 7.5 hours |
| Effective hourly rate | $150 ÷ 7.5 hours = $20.00/hr |
| State minimum wage (California example) | $16.50/hr |
| Shortfall? | No -- $20.00 > $16.50 ✓ |
| Revised example: 6 classes × $18/class = $108 | |
| Effective rate: $108 ÷ 7.5 hours = $14.40/hr | Below $16.50 -- shortfall: $1.65 × 7.5 = $12.38 owed |
Time That Must Be Tracked and Paid
For the calculation above to work, studios must track all compensable time -- not just class time. The most commonly missed time categories:
Mandatory pre-class setup -- equipment arrangement, microphone testing, class planning
Post-class cleanup -- resetting equipment, sanitizing, returning items to storage
Required check-in time before the first class of the day
Mandatory all-staff meetings or training sessions
Time spent waiting between back-to-back classes if the studio requires the instructor to remain on premises
Frequently Asked Questions
Preparation time is compensable if it is integral and indispensable to the principal activity -- meaning the instructor cannot perform the class without it, and the preparation is primarily for the employer's benefit. A 5-minute equipment setup between classes is generally compensable. A 2-hour personal practice session an instructor chooses to do before their shift is generally not. The distinction often turns on whether the preparation is required by the employer.
All time that is controlled by or required for the employer is compensable. This includes: the class itself, required meeting or check-in time before the class, mandatory post-class cleanup, and any other activities the employer requires. Time the instructor spends at the studio voluntarily or for personal reasons does not count.
Yes. Employers can pay different rates for different types of work, as long as each type of work is paid at least minimum wage. If an instructor earns $30 for a class and $10/hour for setup time, both rates are evaluated separately against the applicable minimum wage. There is no requirement that setup time be paid at the same rate as class time.
Yes. Where a state minimum wage is higher than the federal minimum of $7.25/hour, employers must pay the higher state rate. This matters significantly for fitness studios in California ($16.50/hour in 2025), Washington, New York, Colorado, and other high-minimum-wage states. Always use the higher of federal or state for compliance.
Stop calculating this manually every pay period
BEG manages fitness studio payroll including per-class pay, minimum wage floor calculations, and year-end W-2s. 15-minute call.
Related
- Managed Payroll for Fitness Studios -- full service details
- Fitness Trainer W-2 vs. 1099 Classification -- IRS rules
- Managed Payroll vs. In-House for Fitness Studios -- cost comparison
Authoritative source: U.S. Department of Labor: Minimum Wage
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