Former Labor Secretary Allegedly Fueled Toxic Workplace, Drank On Job, Misused Funds, Watchdog Report Finds

Former Labor Secretary Lori Chavez-DeRemer allegedly drank on the job and maintained an “inappropriately close” relationship with a member of her security detail, a government watchdog report released on Thursday said.

The 40-page report by the department’s Office of Inspector General unveiled new details into a “toxic, intimidating and humiliating” environment in the secretary’s office during Chavez-DeRemer’s approximately one-year tenure, before she resigned amid similar allegations in April.

The OIG interviewed dozens of current and former department employees, which found that Chavez-DeRemer’s “condescending and hostile” attitude toward employees caused widespread fear. Witnesses alleged that she selected staff based on physical appearance, conducted verbal “beatdowns” berating them for perceived performance deficiencies and threatened to terminate employees who raised issues with her misconduct.

Chavez-DeRemer’s unprofessional relationship with a security aide involved physical familiarity, private communications, spending at least portions of nights in each other’s hotel rooms and an unofficial stop at an establishment with partially nude dancers, according to the report.

The report also found that Chavez-DeRemer added official engagements to personal trips in order to use department funds for travel, including at least 13 trips visiting family or her home and five trips to Las Vegas. Some lodging costs exceeded 300 percent the “applicable GSA lodging rate,” the report said, pointing to “weaknesses in DOL’s controls for approving excess lodging costs and documenting the official purpose of senior officials’ travel before reimbursement.”

Other violations of department policies included maintaining and consuming a supply of alcohol in the office, and failing to document gifts she received during travel.

“The OIG Report, published months post tenure, is built around the statements of undisclosed individuals,” Nick Oberheiden, Chavez-DeRemer’s attorney, said in a statement. “Still, the report confirms — contrary to premature speculations — that Secretary Chavez-DeRemer did not violate any laws.”

A request for comment sent to an email address linked to an active social media profile for Chavez-DeRemer was returned as undeliverable.

Allegations involving Chavez-DeRemer’s husband, who was barred from the agency’s headquarters after at least two female employees alleged inappropriate behavior, were not included in the report.

DOL spokesperson David O'Brien said in a statement that the department "respects the integrity of the Inspector General’s investigation," but did not comment on whether it would investigate allegations against Chavez-DeRemer's husband.

DOL Inspector General Anthony D’Esposito, a former Republican member of Congress from New York, opened the investigation in January, about a year after she was nominated by President Donald Trump to head the department.

In the months after the investigation began, multiple people involved in the allegations were placed on leave before resigning, including the security aide.

Deputy Secretary Keith Sonderling now leads the department as acting secretary and was nominated by Trump to the Cabinet post in June. He is awaiting Senate confirmation.