WASHINGTON – Labor Secretary Lori Chavez-DeRemer is resigning from the Trump administration to enter the private sector amid an internal investigation into allegations of professional and personal misconduct.
The departure follows a period of significant instability within the Department of Labor and represents the third high-level Cabinet exit in recent weeks, following the removals of Department of Homeland Security Secretary Kristi Noem and Attorney General Pam Bondi.
White House communications director Steven Cheung confirmed the move in a statement, noting that Chavez-DeRemer “will be leaving the Administration to take a position in the private sector.” Cheung praised her tenure, stating she “has done a phenomenal job in her role by protecting American workers, enacting fair labor practices, and helping Americans gain additional skills to improve their lives.”
Inspector General Probe into Misconduct
The resignation occurs as the Labor Department’s Inspector General’s Office continues a months-long investigation into Chavez-DeRemer’s conduct. According to a Department of Labor source with knowledge of the matter, the probe focuses on a complaint alleging Chavez-DeRemer engaged in a sexual relationship with a member of her security detail, a claim she has not publicly addressed.
The investigation also encompasses allegations of the misuse of government resources and staff, including:
- Requests for staff members to purchase liquor on her behalf.
- Attempts to structure official business trips to accommodate personal interests.
- Requests for staff to design itineraries that would allow her to attend a Morgan Wallen concert, a UFC fight in Chicago, and visits with friends and family.
As part of the inquiry, the inspector general received personal text messages between Chavez-DeRemer, her family, and department staff. These exchanges reportedly included messages from Chavez-DeRemer’s husband to at least one junior staff member, requesting updates on the secretary’s location.
The inspector general’s office can make findings and recommend disciplinary action but does not itself remove a Senate-confirmed Cabinet official, a step that rests with the president and, in limited circumstances, with Congress under the U.S. Constitution’s impeachment framework.
Institutional Turmoil and Personnel Shifts
Chavez-DeRemer’s tenure has been characterized by internal conflict and rapid turnover in senior ranks. In March, two of her top aides were forced out following a separate misconduct investigation at the agency, further straining an already unsettled leadership team.
Additionally, reports indicated that Chavez-DeRemer’s husband had been banned from the department’s headquarters following allegations of sexual assault. While a criminal investigation into those allegations has since been closed without charges, the incident contributed to the atmosphere of turmoil within the agency and raised questions about the handling of workplace safety and harassment concerns at a department charged with enforcing them nationwide.
Nick Oberheiden, legal counsel for Chavez-DeRemer, dismissed the claims against the secretary in a statement.
“Secretary Lori Chavez-DeRemer has made a name for herself as a zealous advocate for American workers. Mission-focused and committed to President Trump with utmost loyalty, Secretary Chavez-DeRemer will not comment on biased and absurd allegations against her.”
Workforce Reductions and Agency Upheaval
Sworn in in March 2025, Chavez-DeRemer led the department during a broader administration effort, coordinated via the Department of Government Efficiency (DOGE), to drastically reduce the federal workforce and slash funding. The restructuring intersected directly with the Department of Labor’s core mandate under the federal labor and workplace protection framework, which tasks the agency with overseeing wages, workplace safety and labor standards.
Data from the U.S. Office of Personnel Management reveals the scale of these reductions:
- Workforce decrease: The Labor Department’s staff was reduced by nearly 25% between September 2024 and February, cutting deeply into both enforcement and policy offices.
- BLS impact: Staffing cuts at the Bureau of Labor Statistics (BLS) led to warnings from economists and researchers that the agency lacked the resources to maintain and modernize its primary employment and inflation data, which underpin decisions by the Federal Reserve, state governments and private sector employers.
The agency also faced leadership volatility when President Trump fired BLS Commissioner Erika McEntarfer following the release of a jobs report featuring significant revisions. Chavez-DeRemer later told Fox Business that she supported the president’s decision in the matter, aligning herself with the White House’s increasingly confrontational posture toward official economic statistics.
Deregulatory Agenda
During her time in office, Chavez-DeRemer pursued an aggressive deregulatory strategy, targeting more than 60 workplace regulations for repeal or revision. Many of the initiatives focused on rolling back rules adopted under previous administrations and reshaping how the federal government balances employer flexibility with worker protections.
These initiatives included proposals to:
- Eliminate minimum wage requirements for home health care workers.
- Remove safety standards requiring lighting in active construction zones.
- Reduce health and safety regulations within the mining industry.
Worker advocates warned that the package of changes could weaken enforcement of existing statutes, including core wage-and-hour and occupational safety laws, while business groups argued the rollbacks would lower compliance costs and spur hiring.
In a statement on X, Chavez-DeRemer wrote that it had “been an honor and a privilege to serve in this historic Administration and work for the greatest President of my lifetime,” adding that she was proud of the progress made in bridging the gap between business and labor.
Keith Sonderling will serve as acting secretary of the Department of Labor, assuming day-to-day control of an agency that remains central to the administration’s economic, workforce and regulatory agenda even as it confronts deep internal strains and an unresolved misconduct probe at the very top of its recent leadership.
