Yep, it's smoke and mirrors.
The law is generally very unfavorable for agreements that are in restraint of trade or anticompetitive practices. These are usually broadly illegal or unenforceable, especially with no compensation (consideration).
I can certainly see how some would view the effort as unprofessional, one should know the law better.
There's a case to be made that it works as a mind game. A typical shyster would ignore it, right or wrong does not matter, and a typical trusting honest guy who's a little over zealous about his karma, keeping is word, may honor the agreement (his word), even if told that it's not only illegal, but a scam. It's a threat of punishment for an employee thinking of leaving. Quitting incurs damages of forced unemployment for one year.
I did think you were worried about poaching of customers. Not much you can do about that. The law provides competition for the customer so bad practices may be declined for other options, if the customer chooses. Monopoly practices are generally very illegal and prosecuted under the law. You are saying you have a monopoly regarding your former employee within your radius. For current employees, yes, you can pay them for that. If you require they sit on their butts for a year, you will need to pay them for that also.
It's certainly not the worst practice in business, but where is the upside for you. Guys who will take a customer will do so with no hesitation or recourse. Don't threaten me .. do it. Guys who know the law and have high standards of professional conduct may see a tell, something they would like to walk away from, not get involved in. And honest trustworthy rubes may believe your bluff and worry needlessly about hanging on to something they need to let go of, because of the threatened, promised, punishment for leaving employment. So you punish the good guys with unecessary grief, show the smart guys you cannot be trusted to not punish them arbitrarily, and sign a few shysters in the process (they meet your requirements).
Clearly, you need to be organized ...
The law is generally very unfavorable for agreements that are in restraint of trade or anticompetitive practices. These are usually broadly illegal or unenforceable, especially with no compensation (consideration).
I can certainly see how some would view the effort as unprofessional, one should know the law better.
There's a case to be made that it works as a mind game. A typical shyster would ignore it, right or wrong does not matter, and a typical trusting honest guy who's a little over zealous about his karma, keeping is word, may honor the agreement (his word), even if told that it's not only illegal, but a scam. It's a threat of punishment for an employee thinking of leaving. Quitting incurs damages of forced unemployment for one year.
I did think you were worried about poaching of customers. Not much you can do about that. The law provides competition for the customer so bad practices may be declined for other options, if the customer chooses. Monopoly practices are generally very illegal and prosecuted under the law. You are saying you have a monopoly regarding your former employee within your radius. For current employees, yes, you can pay them for that. If you require they sit on their butts for a year, you will need to pay them for that also.
It's certainly not the worst practice in business, but where is the upside for you. Guys who will take a customer will do so with no hesitation or recourse. Don't threaten me .. do it. Guys who know the law and have high standards of professional conduct may see a tell, something they would like to walk away from, not get involved in. And honest trustworthy rubes may believe your bluff and worry needlessly about hanging on to something they need to let go of, because of the threatened, promised, punishment for leaving employment. So you punish the good guys with unecessary grief, show the smart guys you cannot be trusted to not punish them arbitrarily, and sign a few shysters in the process (they meet your requirements).
Clearly, you need to be organized ...