But how companies enforce them is the real culprit.
This is a failure of our legal system. You can challenge a non compete in court and, depending on a few factors most heavily weighted towards if you can afford a good lawyer, you have a real shot at a win. However, this means you and only you are free from the shackles of this non compete.
Other people who signed a contract with this same exact illegal clause in it are still beholden to it, unless they have the resources to fight it (legal knowledge, time for a court battle, money to pay for lawyers). The threat of a lawsuit is enough to dissuade most people, who lack these resources, to back down from a winnable case.
I actually negotiated this in when I left company 1 for company 2. The language said company two would pay (pay, not reimburse) my legal fees as well as compensate me in the event a TRO was filed (and it was) keeping me from starting my official job.
This is a failure of our legal system. You can challenge a non compete in court and, depending on a few factors most heavily weighted towards if you can afford a good lawyer, you have a real shot at a win. However, this means you and only you are free from the shackles of this non compete.
Other people who signed a contract with this same exact illegal clause in it are still beholden to it, unless they have the resources to fight it (legal knowledge, time for a court battle, money to pay for lawyers). The threat of a lawsuit is enough to dissuade most people, who lack these resources, to back down from a winnable case.