Labor Secretary Lori Chavez-DeRemer has resigned to transition into a private sector position, White House communications director Steven Cheung announced on Monday.

Keith Sonderling, Deputy Secretary of Labor, will serve as acting Labor secretary, Cheung confirmed.

Background and Scrutiny

Chavez-DeRemer has faced significant scrutiny throughout her tenure, including allegations of misconduct and mishandling department funds. The Trump administration labeled these accusations as "baseless."

Chavez-DeRemer's Statement

In a post on X, Chavez-DeRemer expressed gratitude to President Trump and reflected on her service:

"It has been an honor and a privilege to serve in this historic Administration and work for the greatest President of my lifetime. While my time serving in the Administration comes to a conclusion, it doesn't mean I will stop fighting for American workers. I am looking forward to what the future has in store as I depart for the private sector."

Investigation and Allegations

The Labor Department's inspector general launched an investigation into Chavez-DeRemer earlier this year after allegations surfaced that she misused taxpayer dollars to fund personal travel, according to the New York Times.

Whistleblowers accused Chavez-DeRemer of having staff fabricate official visits to locations she wished to visit. These trips, attended by family and friends, were reportedly paid for with government funds. Additional claims include:

  • A "stash" of alcohol in her office, with allegations she frequently drank during work hours.
  • An inappropriate relationship with a member of her security detail.

Chavez-DeRemer has not been formally accused of any wrongdoing.

Staff Changes and Internal Issues

At least four members of Chavez-DeRemer's staff have been fired or placed on leave since the investigation began. Her chief of staff and deputy chief of staff left in early March after being told to resign or face termination. Her director of advance claimed wrongful termination at the end of March.

The investigation also revealed text messages sent to young women staffers, instructing them to "pay attention" to the secretary's husband and father. The New York Times reported that Chavez-DeRemer's father, Richard Chavez, sent a message to a young staffer: "Hearing u/r in town. Wishing you would let me know. I could have made some excuses to get out and show u around. Please keep this private."

Her husband, Shawn DeRemer, also sent a message to a staffer, stating: "I figured you were still in church repenting after your exposure to the demon state of Oregon."

Controversies Surrounding Shawn DeRemer

Shawn DeRemer has been a source of contention within the Department of Labor. He was banned from entering the department's headquarters after women staff members reported he sexually assaulted them. At least one incident was captured on video, according to the New York Times, which cited sources familiar with the matter and a police report.

Source: Axios