Eli5: how exactly can companies enforce non-compete contracts? How is it their business what company you go to, and how would they even know?
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How they would know is a very good question for enforcing non-competes.
In some cases a key employee is in a visible role and is known in the industry. If they change employers, everyone knows. It can even influence the market that maybe that individual knows something is better about their new employer.
If it’s a brilliant but otherwise unknown cog in the company wheel, the old company can try to track them down through the usual social media, professional and other channels that HR often uses in hiring reviews. Maybe even get an employee who knows the former employee to practice a little betrayal and just call them and ask.
It really comes down to how motivated the previous company is to stop a former employee from working for certain competitors. Sometimes there is some revenge involved, sometimes company policy thinking to stop other employees from jumping to another ship.
Non-competes are more psychological than anything else. Some people will honor anything they sign just as a personal principal, regardless of enforce-ability. Others fear the cost of a former employer pursuing them legally.
I suspect most employers do not bother to try to enforce non-competes. If for no other reason than that they would like to poach some employees from a competitor themselves and hope not to have problems about any previous non-competes signed by their new hires.
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