Aaliyah Thomas-Cole, individually and on behalf of all others similarly situated v. United Healthcare Services, Inc., et al.

District Court, E.D. California·Decided April 24, 2026·No. 2:25-cv-03713·Unknown

Opinion

AALIYAH THOMAS-COLE, individually No. 2:25-cv-03713-DJC-CSK and on behalf of all others similarly situated, Plaintiff, ORDER v. UNITED HEALTHCARE SERVICES, INC., et al., Defendants. Before the Court is Defendant United Healthcare Services’s Motion to Compel Arbitration and to Dismiss Class Claims arising from Plaintiff Aaliyah Thomas-Cole’s putative wage-and-hour class action. As explained below, the Motion is GRANTED. //// //// //// //// //// //// Plaintiff Aaliyah Thomas-Cole (“Plaintiff”) filed a putative class action lawsuit against Defendant United Healthcare (“Defendant”) and certain Doe defendants on November 20, 2025. (See generally Compl. (ECF No. 1-2).) Plaintiff alleges that Defendant engaged in a pattern of wage-and-hour violations under the California Labor Code and Industrial Welfare Commission Wage Orders. (Id. ¶ 2.) In her Complaint, she asserts a variety of claims alleging that Defendant 1) failed to pay all minimum, regular, and overtime wages; 2) failed to provide meal periods or pay meal period premiums; 3) failed to authorize rest period or pay rest period premiums; 4) made improper deductions from earned wages; 5) failed to provide accurate itemized wage statements; and 6) failed to pay all wages due during employment and upon separation of employment. (Id. ¶ 3(a)–(f).) After removal to this Court (NOR (ECF No. 1), Defendant filed a Motion to Compel Arbitration and to Dismiss Class Claims (Mot. (ECF No. 8)). The Motion is fully briefed. (Opp’n (ECF No. 10); Reply (ECF No 11).) On April 13, 2026, the Court took the matter under submission pursuant to Local Rule 230(g). (ECF No. 12.) Plaintiff was employed by Defendant in Sacramento, California, as a non- exempt benefit advocate from approximately April 2022 to October 2025. (Compl. ¶ 10.) On February 23, 2022, Defendant sent Plaintiff an offer of employment for the role of customer service advocate, along with a direct link to their Employment Arbitration Policy. (Weedman Decl. iso Mot. (ECF No. 8-4) ¶ 6 & Ex. A (ECF No. 8-5).) The offer letter explained that the Arbitration Agreement was a “binding contract” to “resolve through arbitration all covered employment-related disputes that are based on a legal claim.” (Id.) The offer letter also informed Plaintiff that “[b]y accepting employment with UnitedHealth Group, you agree to be bound by the terms of the Arbitration Policy.” (Id., Ex. A at 3.) Plaintiff signed the Arbitration Agreement (“Agreement”) on February 26, 2022. (Weedman Decl. ¶ 9 & Ex. B (ECF No. 8-6) at 8.) Plaintiff acknowledges that during her onboarding with Defendant, she was told she needed to sign documents in order to begin working. (Thomas-Cole Decl. iso Opp’n to Mot. (ECF No. 10-1) ¶ 4.) The FAA governs arbitration agreements. 9 U.S.C. § 2. Under the FAA, a signatory to an arbitration agreement may obtain an order directing a noncomplying party to arbitrate in the manner provided for in the agreement. 9 U.S.C. § 4. In weighing a motion to compel arbitration, a court must determine: (1) Whether a valid agreement to arbitrate exists and, if it does; (2) Whether the agreement encompasses the dispute at issue. Boardman v. Pac. Seafood Grp., 822 F.3d 1011, 1017 (9th Cir. 2016). “Arbitration is a matter of contract, and the FAA requires courts to honor parties’ expectations.” AT&T Mobility LLC v. Concepcion, 563 U.S. 333, 351 (2011). “When considering a motion to compel arbitration, a court applies a standard similar to the summary judgment standard” of Federal Rule of Civil Procedure 56. Concat LP v. Unilever, PLC, 350 F. Supp. 2d 796, 804 (N.D. Cal. 2004) (citations omitted). The party opposing arbitration receives the benefit of any reasonable doubts and the court draws reasonable inferences in that party's favor, and only when no genuine disputes of material fact surround the arbitration agreement's existence and applicability may the court compel arbitration. Id.; see Three Valleys Mun. Water Dist. v. E.F. Hutton & Co., Inc., 925 F.2d 1136, 1141 (9th Cir. 1991). The decision to compel arbitration is mandatory, not discretionary, if the requirements are met. Dean Witter Reynolds, Inc. v. Byrd, 470 U.S. 213, 218 (1985). The parties disagree whether the Agreement at issue is enforceable. Defendant contends the parties entered into a valid, enforceable Agreement that is governed by the Federal Arbitration Act (“FAA) and encompasses Plaintiff’s individual claims, which essentially arise from the employment relationship. (See generally Mot.) Defendant also asserts the Agreement contains a valid class action waiver that requires dismissal of Plaintiff’s class claims. (Id. at 18.) While Plaintiff explains that she “has no memory of ever reviewing or signing an arbitration agreement[,]” she does not meaningfully dispute that she signed the Agreement that is before the Court. (Opp’n at 5–6.) Plaintiff instead argues that the Agreement is both procedurally and substantively unconscionable and that the unconscionable terms cannot be severed. (Id. at 6–17.) She asks the Court to find the Agreement unenforceable. (Id.) I. Lawful Arbitration Agreement Plaintiff claims the Agreement is unenforceable because it is both procedurally and substantively unconscionable. In her view, in addition to being a contract of adhesion that contains elements of surprise and oppression, the Agreement also “(1) contains an overly broad confidentiality clause; (2) risks the imposition of Defendant’s attorneys’ fees and costs upon Plaintiff; (3) requires arbitration of sexual harassment and sex discrimination claims and requires a waiver of a jury trial for those claims; (4) requires Plaintiff to pay a fee to Defendant to initiate arbitration; and (5) imposes severe and unlawful limits on discovery.” (Opp’n at 5.) Defendant disagrees and considers the Agreement lawful. (See generally Mot.) The Court addresses Plaintiff’s challenges in turn. A. Procedural Unconscionability A procedural unconscionability analysis “begins with an inquiry into whether the contract is one of adhesion.” Armendariz v. Found. Health Psychcare Servs., Inc., 24 Cal. 4th 83, 113 (2000). An adhesive contract is standardized, generally on a preprinted form, and offered by the party with superior bargaining power “on a take- it-or-leave-it basis.” Baltazar v. Forever 21, Inc., 62 Cal. 4th 1237, 1245 (2016); see Armendariz, at 113. Arbitration contracts imposed as a condition of employment are typically adhesive. See Armendariz, at 114–15; Serpa v. Cal. Sur. Investigations, Inc., 215 Cal.App.4th 695, 704 (2013). The pertinent question, then, is whether circumstances of the contract's formation created such oppression or surprise that closer scrutiny of its overall fairness is required. See Baltazar, at 1245–46; Farrar v. Direct Commerce, Inc. (2017) 9 Cal.App.5th 1257, 1267-1268. “Oppression occurs where a contract involves lack of negotiation and meaningful choice, surprise where the allegedly unconscionable provision is hidden within a prolix printed form.” Pinnacle, 55 Cal.4th at p. 247 (cleaned up and italics added); see De La Torre v. CashCall, Inc., 5 Cal.5th 966, 983 (2018). 1. Adhesion The parties and the Court agree that the Agreement is adhesive, as it was presented on a take-it-or-leave-it basis as a condition of employment. (Agreement § A (“Acceptance of employment . .

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Aaliyah Thomas-Cole, individually and on behalf of all others similarly situated v. United Healthcare Services, Inc., et al., (E.D. Cal. 2026).

Aaliyah Thomas-Cole, individually and on behalf of all others similarly situated v. United Healthcare Services, Inc., et al. (Aaliyah Thomas-Cole, individually and on behalf of all others similarly situated v. United Healthcare Services, Inc., et al.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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