How old is this company ?
How many employees ?
Has your attorney researched past lawsuits involving this company ?
There are several issues. The two basic issues differ in that one is concerned with the employee’s creations while working at the firm while the other focuses on post employment creations.
The first might be justified as the firm does not want to compete with its own employees. The second focus can be justified if tied into theft of the firm’s intellectual property.
A no compete would be more appropriate since the firm might have some rights to protect if they trained the employee & a properly written non-compete agreement could cover both situations while employed & post employment. Why isn’t this firm using a non-compete agreement ? Is it because the law is more well established & easier to research & apply ?
When a company tells a future employee that the owner or manager doesn’t understand all that legal stuff in the employment contract, then it is time to run away since it is unlikely that the employer will stop lying once the employee is on board. The other course of action would be to hire an employment attorney to explain the employment contract to your son. And, then once he understands, let him run away as fast as he can.
Too many problems & too many warning signs this early on in a relationship is a clear indication that future problems will follow.
P.S. Does the employment contract also require that the employee live in company housing & only shop at the company owned store even after he no longer works there ?