It still causes the same problem. It limits the opportunities people have available to them. Lets say 5 Guys opens up shop right next to Subway and is offering

It still causes the same problem. It limits the opportunities people have available to them. Lets say 5 Guys opens up shop right next to Subway and is offering $3 more per hour than Subway. With non-compete's at Subway, those workers would be stuck and there would be no onus on Subway to improve their wages or benefits. Without the non-compete Subway workers would apply for work at 5 Guys, which would force Subway to become a more competitive employer. No matter what rung of the ladder you're on, non-compete's hurt employees and benefit employers just as they were intended to do.