Do you think it should be legal for companies to have non compete agreements?

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My husband worked for a carpet cleaning company where he had to sign a non-compete agreement. He thought it just meant he could not start his own business after he quit he went to work for another carpet cleaner, and was taken to court. The judge issued an injunction which made him have to quit that job and also issued a judgement against him for $10,000 dollars in liquidated damages.