Lori Chavez-DeRemer is stepping down as Labor Secretary to take a private sector position, White House communications director Steven Cheung announced Monday. Deputy Secretary Keith Sonderling will assume the role on an acting basis.
The resignation comes as the department's inspector general investigates allegations against Chavez-DeRemer involving misuse of taxpayer funds, inappropriate workplace relationships, and conduct violations that have shadowed her tenure since early this year.
According to whistleblower complaints filed with the Labor Department's inspector general, Chavez-DeRemer allegedly directed staff to fabricate official business justifications for personal travel paid with government dollars. The trips, taken with family and friends, would not have qualified for public funding under normal circumstances. Additional allegations include maintaining alcohol in her office and consuming drinks during standard work hours.
The complaints also describe an inappropriate relationship between Chavez-DeRemer and a member of her security detail, and cite text messages in which her father and husband made contact with young female staffers. In messages obtained by the New York Times, her father Richard Chavez suggested meeting with a junior employee, writing "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 sent his own message to a staffer saying he was "feeling forgotten," and followed with a crude reference to Oregon. The Trump administration has dismissed the allegations against Chavez-DeRemer as "baseless."
The investigation has already triggered personnel changes within the Labor Department. At least four of Chavez-DeRemer's staff members have been fired or placed on leave. Her chief of staff and deputy chief of staff were told to resign or face termination in early March. A director of advance claimed wrongful termination in late March.
Shawn DeRemer faced his own problems at the department. He was banned from entering Labor Department headquarters after multiple women reported sexual assault allegations against him. At least one incident was recorded on video, according to people familiar with the matter and a police report reviewed by the Times.
Chavez-DeRemer becomes the third Cabinet secretary to exit Trump's second-term administration, following the removal of Attorney General Pam Bondi and Homeland Security Secretary Kristi Noem.
Author James Rodriguez: "Another Cabinet official exits in a cloud of misconduct allegations and bureaucratic chaos, raising questions about vetting and oversight at the highest levels of government."
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