DraftKings Can Enforce Noncompete Clause, First Circuit Says

A former DraftKings Inc. executive can’t work at rival sports-betting company Fanatics Inc. before his noncompete agreement expires, the First Circuit held Thursday.

DraftKings’ ex-VIP marketing chief Michael Hermalyn left the company for Fanatics even though he signed an agreement that he wouldn’t work for a competitor or solicit other employees until a year after his employment at DraftKings ended. His former employer claims he stole company secrets and client files before joining Fanatics.

Hermalyn argued that he should be protected by California’s ban on most noncompete clauses since he moved from New Jersey to California to become an employee ...