Everyone here is commenting about overautomation, but this isn't an overautomation problem. It's a secondary sanctions problem. The developer isn't being banned for breaking Google's rules, he's being banned for having hired someone else who later broke those rules; and then that ban was transitively applied to their personal account as well.
This is beyond the pale. Google should not have the power to decide who you are and are not allowed to hire. It both goes against the basic concept of a limited-liability corporation, and harms worker rights.
This is beyond the pale. Google should not have the power to decide who you are and are not allowed to hire. It both goes against the basic concept of a limited-liability corporation, and harms worker rights.