IG Report: Ex-Labor Secretary Created Hostile Workplace, Misused Funds

The Labor Department's Office of Inspector General released a 44-page report Thursday finding former Secretary Lori Chavez-DeRemer violated department policy on multiple fronts during her March 2025 to April 2026 tenure.

• 38 witnesses described the department under Chavez-DeRemer as 'toxic, intimidating and humiliating.'
• 53 current and former staffers were interviewed; investigators reviewed 500-plus documents, images and videos.
• Travel vouchers show taxpayers paid $1,324.21 in transportation costs for the Oregon trip that included a strip club stop.
• Unreported gifts included an alligator-hide wallet, work boots, cowboy hats and baby gifts.

Why it matters: The report documents policy violations spanning personnel, ethics, security, and financial conduct at a Cabinet-level agency.

• The bodyguard's focus on Chavez-DeRemer 'reduced protective coverage for the Secretary,' the report found.
• Staff were directed to perform personal tasks on official time, including organizing her bedroom closet and buying Christmas ornaments and wine.

How 38 sources split on this story

Where they split: Whether the relationship with the bodyguard was romantic or sexual is disputed: the IG found the relationship 'inappropriately close' but said it lacked 'sufficient direct evidence' to establish it was romantic or sexual.

What’s next: Chavez-DeRemer's attorney Nick Oberheiden says she 'did not violate any law.'

• Keith Sonderling leads the Labor Department; his Senate confirmation vote is pending.
• Whether the IG findings will lead to any legal or financial consequences for Chavez-DeRemer or the unnamed security detail member.
• Whether the American Workers First PAC she founded after leaving office will face separate scrutiny given it has filed no public contribution reports.