As for us, we responded to their nasty letter with a nastier letter that told them that we didn't view the employee in violation, that the non-compete was absolutely unenforceable in California and essentially unenforceable in Washington -- and that we were prepared to draw pistols at dawn over it. That was more or less the end of it, but it was traumatizing to the ex-AWS employee, turning an otherwise amicable separation venomous; it's despicable, cowardly behavior.
(Also, if anyone needs counsel on the ground in King County to fight this, I have a great recommendation for you; DMs open.)