This seems really shady. It seems to imply it's legal for companies to restrict what you do after you don't work for them anymore? Any historians around? How did the US get to a place where employers have near total control of their employees, even after they're no longer paying them?

That just sounds bad. I've also heard of contracts that essentially prohibit side projects or moonlighting. Are software developers not aware they don't need to accept these restrictions to make a living? I guess maybe companies impose the restrictions under duress like in this story. Still, I'm surprised companies with such unethical employment practices can manage to hire anyone.