I was desperate for work and signed a non-compete for a security guard job, one of the easiest jobs to get. If I got a job at a competitor within N miles I would have had to pay $Xtimes1000 to my current employer.
Doesn't have to make it to court for them to strongarm you into a settlement. The threat of a lawsuit is enough for many to agree on a settlement just so it doesn't go to court, even if you'd likely win as a defendant. Lawyers are expensive and so is the appeals process.
Exactly. As the cops say, you may beat the rap, but you can't beat the ride. In a court it costs money to win or to lose. If you fight, they can afford to fight more than you can.
The nasty letter and threat of a lawsuit are the threats. You have to remember that for many Americans, a lawsuit means bankruptcy and that in most states non-compete agreements are lawful.