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It's legal for them to do so, and if employees can't go to a competitor, it has the effect of depressing wages.
Non-compete clauses make sense for certain higher level employees (and usually involve some sort of garden leave payment too) but corporate America has started to slip all sorts of bullshit into standard employment contracts just because they can.
I don't even think it makes sense for them anymore. You either retain them with pay and job satisfaction or not. This idea that corporations can own experience is bullshit.
Kinda like the whole Disney artist thing.
Any character you create while working for Disney is Disney property. Even if it was a quick sketch done on a napkin. Even if the character doesn't even have a name.
wait is that on company time or just in general?
In general. Even art the artist makes at home in their own free time belongs to Disney
It's not just to depress wages, preventing worker mobility also lets you abuse them in other ways like rotating schedules (which also prevent workers from holding multiple jobs or going to school), bad work environments and wage theft.
It's not surprising that companies are increasingly abusing the workforce, it's surprising that workers haven't started organizing to fight back.