It's not if you're offering a contract with shitty fishhooks designed to fuck over anyone who hasn't had a good lawyer spend some time looking over the contract - then it's a very rational ploy, with the side-effect of checking how easy it is to bully a potential hire into acting against their own best interests.
What you as an employee should think about that is left as an exercise for the reader.
It's not if you're offering a contract with shitty fishhooks designed to fuck over anyone who hasn't had a good lawyer spend some time looking over the contract - then it's a very rational ploy, with the side-effect of checking how easy it is to bully a potential hire into acting against their own best interests.
What you as an employee should think about that is left as an exercise for the reader.