logo
Meathead feds target California movers over nonexistent age discrimination: ‘Weaponization of government'

Meathead feds target California movers over nonexistent age discrimination: ‘Weaponization of government'

New York Post05-06-2025
Which would you be more likely to hire: a moving company whose ads feature energetic, youthful workers or one that highlights its less sprightly, aged employees?
That's a no-brainer — even a meathead could answer such a simple advertising question.
Yet the federal government has spent about a decade investigating California-based, family-owned Meathead Movers for age discrimination, citing its marketing materials — demanding $15 million in penalties and suing when the company wouldn't cough up the cash.
And the US Equal Employment Opportunity Commission has done this without pointing to a single discrimination complaint.
Advertisement
Meathead, California's biggest independent moving company, and its CEO, Aaron Steed, are finally fighting back — after a think tank heard about the crazy case.
'The EEOC is not only targeting a successful American company on what appears to be pretextual grounds, but now it's refusing to tell the public why it did that. And we think the public has a right to know,' Jon Riches, the Goldwater Institute's vice president for litigation, tells The Post.
Goldwater sent the agency a Freedom of Information Act Request in March, seeking basic facts such as the number of age-discrimination complaints against Meathead Movers and number of EEOC investigations into alleged age discrimination at any moving company since January 2016. The feds refused to 'fess up.
Advertisement
So this week Goldwater appealed, Riches tells The Post exclusively — and the EEOC has 30 days to respond before the Arizona think tank will sue.
'We bring legal actions to challenge government overreach and unconstitutional action,' explains Riches, an ex-Navy JAG who joined Goldwater in 2012. 'We've had cases of many, many, many other government agencies, and I've never seen anything this unprecedented in my experience.'
Most EEOC lawsuits are the result of discrimination complaints. The agency has filed just eight in the last decade based on what it calls 'directed investigations' — those 'without a charge of discrimination filed by an individual.' Meathead Movers' case is one of them.
'We are hopeful that the EEOC stops this ridiculous prosecution of Aaron and his company, but we also want to know why it started and why the government made the decisions it was making,' Riches says.
Advertisement
Can the feds really fine a firm simply for its marketing — when it's not fraudulent?
'No, I don't think so. And I think that also raises First Amendment concerns. Obviously Meathead Movers has a right to communicate truthful information about lawful activities, including in its marketing materials' — and 'it markets individuals that are capable of performing the job,' Riches says.
But, he adds, 'The EEOC doesn't really seem to be too concerned with the First Amendment.' It 'sent Aaron a very staggering gag-order letter. Aaron has not been shy about talking about the facts of the case and what the government's doing to him on social media, and the agency sent him a letter, basically telling him to stop doing that.'
Aaron Steed won't stop. 'I'm aware of my constitutional rights, and I'm fighting for my company's existence and the 300-plus families that depend on us,' he tells The Post — noting EEOC 'sent the gag order after Goldwater sent a FOIA request.'
Advertisement
EEOC started investigating Meathead around 2015 and finally contacted Steed in 2017. He insists the company doesn't discriminate. 'So we welcomed and embraced the EEOC, answered all their questions,' he says. 'We fully cooperated with the investigation, and then we were just shocked when we got a bill for $15 million shortly after — and with the full weight of the federal government to collect it.'
How did it arrive at that figure?
'Even though there was not a single complaint against my company that initiated this, their logic was that there's at least 500 class members' — all hypothetical, as Steed notes. EEOC decided lost wages would total $15,000 per person, 'which is a record for age discrimination. No settlement has ever been reached for that amount. And then they multiplied it times two.'
Why times two?
'Fees and penalties. And we quickly explained to them, 'Hey, we can't afford that,'' Steed replies. 'It has felt like this has never been about age discrimination. It's been about them trying to run over my company, trying to put us out of business,' he adds. 'It feels personal, and it doesn't make sense.'
The 45-year-old started the company as a high-school junior in 1997. 'I wrestled in high school and in college, and this was a perfect job for me to support myself and my friends and my brother while going to school playing sports,' he recalls. 'Once I turned 21, 22, I saved up enough money to buy a truck. And now we have hundreds of employees and 80 trucks.'
Steed says he has employees over 40 — even over 60. Still, he notes, 'The reality of our job is that a lot of younger people tend to gravitate towards it. The job description is to move heavy things all day, up and down stairs, and then at Meathead Movers, you're expected to jog.'
That's right: After you've put furniture or boxes in the truck, you hustle back for more. 'That's part of what makes us different than typical moving companies,' Steed explains. 'It kept the momentum going, kept us focused as an athlete. It kept us in our flow state. It always really impressed the customers. It made move day more of an athletic event, and since all moving companies charge one hourly rate, we save our clients time and money, and this is what we've done since the get-go.'
Advertisement
It's a win-win situation: 'My employees love getting paid to work out, and the customers get a great value.'
'We pay $18 to $20 an hour, and you've got to be able to pass a drug test and a criminal-background check to work for us and have a great attitude,' he says. 'We have a reputation for doing really good quality work with people you can trust in your home, and we give back to the community. We're most known for offering unlimited free services to women fleeing abusive relationships, in partnership with eight different domestic-violence shelters across central and southern California.'
Steed reflects, 'This has been my life's work.' He hopes to pass the company onto his and his wife's 3½-year-old son one day — if it survives.
'I've already spent well over a million and a half dollars defending myself for a crime I haven't committed, and it is just absolutely destroying us,' he says. 'I can't afford to keep litigating against the federal government. It's incredibly expensive, it's crazy, very time consuming and very stressful.'
Advertisement
He doesn't know why the feds targeted him. 'Last week, a friend of mine said, 'Hey, did you run over someone's cat over there at the EEOC?'' he says. 'It feels deeply personal, and I really don't understand it.'
Goldwater, which is working pro bono, is flummoxed too. Perhaps a former competitor is involved. What it does know: 'The case raises serious questions about the weaponization of government.'
'This would be a really different sort of case if it was based on actual complaints of people who are actually harmed. But for a government agency to concoct these very thin allegations against a successful American company should trouble all your readers,' Riches says. 'Why would the federal government target a company whose job is moving because it hires people who can perform that job, regardless of their age? If it can do that to Meathead, it could do that to anybody. This is a bigger issue than just the EEOC and just Meathead Movers.'
Steed spoke to The Post from LAX, where he was awaiting a flight to Washington, DC — where he'll meet Thursday with EEOC Acting Chair Andrea Lucas. Was that a tough meeting to get? Steed laughs.
Advertisement
'Yeah,' he finally responds. 'We've been wanting to meet with them for a while, and I'm grateful that the chair has taken time out of her busy schedule to meet with us.'
Lucas did not respond to The Post's request for comment. Spokesman Victor Chen said, 'We cannot comment on ongoing litigation, but we can point you to our public statement at the time the suit was filed.'
He also sent the 2023 lawsuit filed in federal court. It complains 'Meathead Movers' founders and executive management . . . describe 'young and energetic-student athletes' as part of their founding vision.'
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Apple's top AI executive Ruoming Pang leaves for Meta, Bloomberg News reports
Apple's top AI executive Ruoming Pang leaves for Meta, Bloomberg News reports

Yahoo

time25 minutes ago

  • Yahoo

Apple's top AI executive Ruoming Pang leaves for Meta, Bloomberg News reports

(Reuters) -Apple's top executive in charge of artificial intelligence models, Ruoming Pang, is leaving the company for Meta Platforms, Bloomberg News reported on Monday, citing people with knowledge of the matter. Pang, manager in charge of the company's Apple foundation models team, will join Meta's new superintelligence team for a compensation package worth millions of dollars per year, the report added. Meta and Apple did not immediately respond to Reuters requests for comment. The development comes as tech giants such as Meta aggressively chase high-profile acquisitions and offer multi-million-dollar pay packages to attract top talent in the race to lead the next wave of AI. Meta CEO Mark Zuckerberg has reorganized the company's AI efforts under a new division called Meta Superintelligence Labs, Reuters reported last week. The division will be headed by Alexandr Wang, former CEO of data labeling startup Scale AI. He will be the chief AI officer of the new initiative at the social media giant, according to a source. Last month, Meta invested in Scale AI in a deal that valued the data-labeling startup at $29 billion and brought in its 28-year-old CEO Wang. Sign in to access your portfolio

Microsoft exec offers horrifying advice to laid off employees
Microsoft exec offers horrifying advice to laid off employees

Miami Herald

time25 minutes ago

  • Miami Herald

Microsoft exec offers horrifying advice to laid off employees

Microsoft (MSFT) made an announcement last week that's become hauntingly familiar news in recent months: it's decided to conduct yet another round of layoffs. On June 2, the Redmond-based tech company said it will lay off less than 4% of its global workforce, which adds up to about 9,000 of its employees. Don't miss the move: Subscribe to TheStreet's free daily newsletter Microsoft has done multiple rounds of layoffs this year as it scales up its AI plans, leaving many wondering if they'll be next on the chopping block. It's a scary time to be in tech, as Meta, Amazon, and Google have also announced layoffs this year. All these companies have also been building their AI investments, with Meta committing to spend $65 billion in 2025, Amazon committing $100 billion, and Google committing to $75 billion. Related: Microsoft sends a brutal message to loyal employees Add into this that the news is crammed with threats of AI eliminating jobs, and it's naturally creating a lot of anxiety for those who have been laid off and need to look for a new role. People often wax philosophical on LinkedIn about layoffs, whether they were affected by them or simply want to comment on what they mean for the affected industry. But when a key Microsoft executive decided to do so in a recent post, he hit a nerve with comments that seemed tone-deaf to the newly unemployed. In a now-deleted LinkedIn post screencapped by BlueSky user and Necrosoft Games Creative Director Brandon Sheffield, Executive Producer at Xbox Game Studios Publishing Matt Turnbull shared some thoughts on what he believed those affected by the recent Microsoft layoffs should do. More Layoffs: Disney makes a devastating layoffs announcementFedEx layoffs signal a concerning business trendMeta quietly plans rude awakening for employees after layoffs "These are really challenging times, and if you're navigating a layoff or even quietly preparing for one, you're not alone, and you don't have to go it alone," Turnbull wrote. "I know these types of tools engender strong feelings in people, but I'd be remiss in not trying to offer the best advice I can under the circumstances," he continued. "I've been experimenting with ways to use LLM AI tools (like ChatGPT or Copilot) to help reduce the emotional and cognitive load that comes with job loss." Related: Microsoft joins Facebook and Google in upsetting practice Turnbull goes on to recommend a few prompts those affected by layoffs can use, including career planning prompts, resume help, how to draft a post to foster networking, and even how to ask an LLM for help with imposter syndrome. In his own post where he shared the screencap, Sheffield said, "Something I've realized over time is people in general lack the ability to think in a broader scope and include context and eventualities. But after thousands of people get laid off from your company, maybe don't suggest they turn to the thing you're trying to replace them with for solace." While the June jobs report looked positive at a glance, with the unemployment rate falling to 4.1% and 147,000 nonfarm jobs added per the Bureau of Labor Statistics, a deeper look reveals other troubles. Unemployment duration increased from 21.8 to 23 weeks, signifying a longer struggle to find work, and the percentage of people unemployed for 27 weeks or more rose to 23.3%. More stories are also emerging about the use of AI in both hiring and applying. Jobseekers have begun to report experiencing job interviews with AI instead of with human beings, with many finding the process clinical and disappointing. To fight back against what seems like an impossible job market, many applicants are also using AI to mass apply to jobs, leaving recruiters overwhelmed and unable to cope. Meanwhile, a recent ResumeBuilder survey also found that 66% of managers now turn to AI chatbots such as ChatGPT when making decisions about layoffs. In addition, 78% turn to it for decisions on raises, while 77% use it for deciding on promotions. Related: Amid AI boom, veteran analyst reboots AMD, Supermicro stock price targets The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.

Cathie Wood's Tesla Bet Pays Off Again. But How Long Can It Last?
Cathie Wood's Tesla Bet Pays Off Again. But How Long Can It Last?

Yahoo

time36 minutes ago

  • Yahoo

Cathie Wood's Tesla Bet Pays Off Again. But How Long Can It Last?

Tesla is part of the Magnificent Seven. The stock has richly rewarded long-term investors. The company faces significant challenges, however. These 10 stocks could mint the next wave of millionaires › Cathie Wood, CEO of Ark Invest, oversees numerous exchange-traded funds (ETFs), including a family of funds that invest in technology stocks. These funds have had some success in the past, with the Ark Innovation ETF (NYSEMKT: ARKK), the largest one under the company's umbrella, returning nearly 60% over the past year through June 30. That's nearly four times the Nasdaq Composite's 15.7% return during that time. But the fund isn't necessarily for the faint of heart, given its concentration in the tech sector. It seeks to invest in companies at the forefront of "disruptive innovation. One of the Ark Innovation ETF's biggest winners has been Tesla (NASDAQ: TSLA). As of July 2, the fund owned about 2.1 million shares of the electric vehicle (EV) maker. That stake, worth over $630 million, represented 9.6% of the fund's assets, making it the ETF's biggest position. But can Tesla continue to rocket upwards, or is it due for a crash landing? Tesla, one of the "Magnificent Seven" group of technology stocks, has produced strong returns for shareholders. In 2024, the stock gained 62.5%, easily besting the S&P 500's total return of 25% and the Nasdaq Composite's total return of 29.6%. Tesla's automotive business produces most of the company's revenue. In 2024, this fell 6% to $77.1 billion due in part to lower EV prices. Including services (e.g., used vehicles, maintenance services, supercharging, and insurance), the top line from that segment dropped 3% to $87.6 billion. Its other major revenue source is the energy generation and storage segment, which was a bright spot. That business includes selling, leasing, and financing solar energy generation and storage products, and it saw a 67% increase in revenue to $10.1 billion. However, it made up only about 10% of Tesla's total revenue. Arguably, Elon Musk's relationship with Donald Trump, both during the campaign and his presidency, likely contributed to the stock price growth last year. But Musk and Trump have had a falling out, and it's difficult to analyze a company's long-term prospects based on personal relationships with politicians. The stock has lost 21.9% this year through July 2, badly lagging the S&P 500, which has gained 6.8%. Additionally, portions of the Republicans' recently passed tax and spending bill would seem to hurt Tesla's prospects. The new law eliminates the federal tax credits for electric vehicles and solar energy systems, which makes those products more expensive for consumers. Tesla was already facing challenges, including China-based EV giant BYD (OTC: BYDD.F) (OTC: BYDDY), which has been slashing its prices. The fierce competition has negatively affected Tesla's results. Tesla will report its second-quarter results at the end of the month, but its first-quarter automotive revenue dropped by 20% to $14 billion. That results in a total top-line drop of 9%, and its operating income under generally accepted accounting principles (GAAP) fell by 66% to $399 million. Management has already published its second-quarter vehicle delivery numbers, which showed that its sales remain under pressure. It delivered about 384,000 cars in Q2, compared to over 422,000 in the prior-year period. Management has been investing in new technologies and products, like the fully autonomous Cybercab, which is scheduled to go into production next year. There's a potentially large market for such vehicles, and for the robotaxi service Tesla intends to build, but it's one fraught with challenges. The race to autonomous driving has seen a number of false starts from other companies. It's hard to bet against a Musk-run company given the success he's had in his various ventures. However, given the challenges Tesla faces and its high valuation -- it trades today at a price-to-sales ratio of 11.6 and a price-to-earnings ratio of 173 -- I'd stay away from the stock. And for investors in the Ark Innovation ETF, I wouldn't expect the EV stock to be the biggest positive driver of the fund's future returns. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $413,238!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $40,540!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $699,558!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join , and there may not be another chance like this anytime soon.*Stock Advisor returns as of July 7, 2025 Lawrence Rothman, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends BYD Company. The Motley Fool has a disclosure policy. Cathie Wood's Tesla Bet Pays Off Again. But How Long Can It Last? was originally published by The Motley Fool

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store