That's a good one! However, I'd like to say if there is a very good severance paid (golden parachute) than a non compete is OK in my eyes. If you can't afford a great severance, than by all means, make life as easy as possible for your employees and remove anything that can block them getting rehired. These are real things you can do instead of just saying "oh sorry, I'm laying you off, I feel so bad, yada yada yada"..