I also got language put into my contract to specifically allow for some of my moonlighting activities that could possibly be seen as a conflict. Both wound up being useful when the company expanded and they attempted to enforce different rules on me. Because my contract said what it said, I was able to get the HR person to back-off and didn't have any fear when I did eventually leave for a competitor. And because of my moonlighting clause, I was able to have side-projects when other employees were often discouraged from doing the same thing (part of me felt bad for having different rules, but if I was capable of getting those clauses put in my contract when I was 24, others were too).
It is true that employees, especially lower-level employees, don't always have the leverage to change the contracts they sign (especially at larger companies), but I would personally never sign a non-compete unless there were very specific scenarios involved (i.e. it was either incredibly, incredibly narrow or the company would pay me while I waited out the non-compete), no matter what HR or the recruiter says. You don't need to be adversarial when discussing language or making changes -- most places are reasonable. And if a place isn't reasonable but refuses to remove non-compete language from a contract, even though they swear they will never exercise it, well, that's a giant red flag.
> It is true that employees, especially lower-level employees, don't always have the leverage to change the contracts they sign (especially at larger companies)
Confused, so do you think this is practical for people or no? There are only so many 3-person startups to go around that would change any terms for anybody...
This depends entirely on their terms, how many potential hires read and care about their terms, what sort of talent they are looking for, and how attractive the position is.
Sure it's a hassle for the 3-person startup, but I imagine this is much harder with Big Co. where the hiring manager may ask legal to make changes for a great potential hire and legal tells them to take a hike.