non-competes aren't that uncommon in many industries for key personal. For a DOD Coordinator or Controller, I'd expect one. For a lower level developer probably not, though non-disclosure agreements are probably still in order to protect technology.
This is irrespective of salary
The management reaction as described in the post by the new alias suggests that there was some sort of breach of confidence with an employee who was trying to take (or took) business from Virtra to another company