Watchdog report details workplace misconduct and fund misuse by former Labor secretary Lori Chavez-DeRemer

Watchdog findings and workplace environment

A report from the US Department of Labor Office of Inspector General found that former Labor Secretary Lori Chavez-DeRemer fostered a hostile work environment, drank alcohol during office hours, and misused federal resources during her tenure. The investigation, initiated in January 2026 under Inspector General Anthony D'Esposito, evaluated 500 agency documents and conducted interviews with 53 current and former Labor Department employees alongside one official from another federal agency. Among the witnesses interviewed, 38 described the secretary's office as toxic, intimidating, and humiliating.

Investigators documented widespread fear among personnel, noting that senior staff engaged in verbal tirades and threatened workers with dismissal if they reported misconduct. Aides also alleged that hiring and workplace treatment reflected biases based on physical appearance. In one documented instance, former chief of staff Rebecca Wright relocated an employee's desk to prevent a person described as overweight from working in the reception area, while advising another staff member against a short haircut to avoid looking like a lesbian. Chavez-DeRemer and senior aides kept a supply of alcohol in the office, drinking during work hours and ridiculing employees who chose not to participate.

Travel expenditures and ethics breaches

The watchdog uncovered a recurring practice of mixing private travel with official agency business to obtain public reimbursement. Investigators identified at least 13 trips where Chavez-DeRemer visited family or personal residences, as well as five separate trips to Las Vegas, Nevada. Agency records showed lodging expenses that exceeded allowable General Services Administration reimbursement rates by up to 300 percent, including a three-night stay at a luxury resort and spa in Palm Beach, Florida.

The inquiry also established that Chavez-DeRemer violated federal ethics regulations by failing to report at least five expensive gifts received during travel. Undocumented items identified by investigators included cowboy hats, work boots, and a scarf.

Personal errands and security detail conduct

Federal personnel were regularly directed to carry out private domestic chores during official working hours. In one case, Chavez-DeRemer ordered an assistant to drive a government vehicle to her residence to do laundry, clean, and organize clothing, shoes, and handbags. Other employees were instructed to organize her bedroom closet, buy personal gifts, purchase alcohol, and translate conversations with Spanish-speaking contractors at her home.

Investigators also examined an inappropriately close relationship between Chavez-DeRemer and a member of her security team. The report noted physical familiarity, shared hotel rooms during travel, and an unofficial visit to an adult entertainment venue with partially nude dancers, where an accompanying agent was told to distribute cash. The watchdog found no direct evidence of a sexual relationship, though the security aide and several senior officials resigned or were placed on leave before Chavez-DeRemer stepped down. Separately, agency officials barred her husband, Shawn DeRemer, from headquarters following sexual misconduct complaints from two female staff members.

Administrative turnover and defense response

Chavez-DeRemer was sworn in on 11 March 2025 and resigned on 20 April 2026, making her the third cabinet secretary to depart the second Trump administration following Kristi Noem and Pam Bondi. Deputy Secretary Keith Sonderling was appointed to lead the agency as acting head following her departure.

Her legal counsel rejected the investigation's findings in an emailed statement.

Secretary Chavez-DeRemer is not surprised about the report: the report is untimely, moot, built around undisclosed individuals, and concludes what Ms Chavez-DeRemer always knew, namely that she did not break any laws.

The Department of Labor issued a separate statement noting that it respects the integrity of the inspector general's inquiry and directed all further questions to the watchdog office.