On this website, I do not always get to give good news, and this is one of these times. I understand that hearing things less than optimal is not easy, and I empathize. Thanks in advance for not "shooting the messenger."
I am sorry to say that now that a contract has been signed with Employer2, Employer2 can enforce that contract. Unless it states that it allows a cancellation period or a way to void it, it does not. Now Employer2 cannot force you to work against your will. However, what they can do is sue you for the difference between what they would have been paying you, and, what they would have had to pay to someone else for the same position.
Employer1's non-compete is in force, although one can try to argue that it is "too oppressive" and not reasonable, and if so, it may be scaled down. See here
However, the problem is that this is on a case by case basis and the Court would only rule if you (1) filed a suit asking them to do so, or, (2) simply began working for Employer2, and then if Employer1 sues, the affirmative defense of the non-compete being too oppressive may be argued. Regardless, in either scenario, there is no guarantee.
So I am afraid that this is really a very difficult position. You are now obligated to both entities, and are in a tug-and-pull scenario. Employer2 can sue you if you do not work, Employer1 can sue you if you do.
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