How is 100% compensation silly? Non-compete agreements restrict your ability to freely practice your craft. They are prone to being improperly applied or outright abused (see Jimmy John's audacious non-compete clause). This has happened so often that California practically outlawed them. The root of the problem is that a boiler plate non-compete clause in every employee contract costs nothing. The company can pick and choose when to enforce it, so why not include it? Requiring 100% compensation forces companies to justify the non-compete with their pocket book. This is a powerful feedback mechanism that balances restricting a person's basic rights with legitimate business needs.