he even has a non-compete with Obsidian
Meaning what exactly? He can't start a company to make video games or can't work full time for one? That is some dick move from Obshitians...
He can't start a similar business or work on actual game content (and more stuff I don't know if I can share) within a region specified in the agreement (could be Orange County, for example, but I don't know in this case). I don't know the duration either, but I think 1 year is the limit.
Non-compete clauses are unenforceable in California, with 2 exceptions: trade secrets and business owners/partners. They allow these 2 exceptions because it is believed that competing with the former business would reduce the value of the assets that were sold and sharing trade secrets could do severe harm to said business.
MCA was a partner at Obsidian, so he can't take on any new projects or be hired by any other game dev in OC(or perhaps California) until it expires.