My lawyers have always told me that non-compete’s rarely hold up in court. 99% of the time they are misused or misunderstood.
I’ve run into it by hiring people who had a non-compete at a previous company.
basically, a company has someone sign what amounts to a frivolous non-compete. Many employees are afraid of it and so abide by it, being a win for the company. The reality is, it won’t hold up in court, but the benefit to the company is they have more financial resources to fight it in court and draw it out, and make it an expense the employee can’t compete with.
This is why collective bargaining is important. It helps balance that power. And I say that as an owner of many businesses with many employees.