U.S. Labor Secretary Lori Chavez-DeRemer resigned on April 20 as the Labor Department’s inspector general neared the end of a months-long investigation into allegations involving her and her top aides, sparking new uncertainty at the federal agency that oversees workplace safety, wage enforcement and central learning policy in the construction industry.
White House Communications Director Steven Cheung said in a social media post that Chavez-DeRemer will “leave the Administration to take a position in the private sector” and that Assistant Secretary of Labor Keith Sonderling will serve as acting Labor Secretary. Cheung also praised his tenure, saying he had “done a phenomenal job” running the agency.
In a statement reported by Reuters, Chavez-DeRemer said: “Although my time serving the Administration is coming to an end, that does not mean I will stop fighting for American workers. I am looking forward to what the future holds for me as I leave for the private sector.”
Several media outlets have reported on the inspector general’s investigation, which focuses on whistleblower allegations of professional misconduct, including claims that Chavez-DeRemer had an affair with a member of his security team and used department resources for personal travel.
Reuters also reported that she was expected to be interviewed about the matter within days. The Associated Press reported separately that the allegations also included claims that he drank alcohol on the job and abused the power of his position.
Chavez-DeRemer is the third cabinet secretary to leave in Trump’s second term, following the departures of Attorney General Pam Bondi and Homeland Security Secretary Kristi Noem. The White House has not announced a timetable for naming a permanent successor.
The resignation drew widely varying reactions from organized labor, contractors and lawmakers.
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AFL-CIO President Liz Shuler said in a statement on April 20 that at a time of rising costs, job insecurity tied to artificial intelligence and broader economic uncertainty, the country needs “a labor secretary who understands workers and works to improve our lives, not just rubber stamp corporate wish lists and remove the protections we count on.”
Keith Sonderling, deputy secretary of labor and now acting secretary of labor, at his Senate confirmation hearing in Washington, DC, in February 2025. He will now lead the agency until a permanent replacement is found following the resignation of Lori Chavez-DeRemer on April 20.
Source: US Senate Committee on Health, Education, Labor and Pensions
Associated General Contractors of America, on the other hand, emphasized continuity under Sonderling. Brian Turmail, the group’s vice president of public affairs and workforce, said AGC is “looking forward to working with Acting Secretary Sonderling and his team to continue to find ways to rebuild a pipeline to prepare future workers for well-paying careers in construction.”
Turmail added that AGC has “built a strong and productive relationship with Deputy Secretary Sonderling” and plans to continue working with the administration and Congress on legal immigration pathways to help ease labor shortages and streamline regulation “so that workers remain safe, healthy and secure in a way that ensures the prosperity of workers and the broader economy.”
The resignation also drew criticism from Capitol Hill. Rep. Rosa DeLauro, D-Conn., ranking member of the House Appropriations Committee, said in a statement that Chavez-DeRemer’s tenure was “plagued with allegations of misconduct” ranging from abuse of authority and alleged favoritism in grants to inappropriate behavior with subordinates.
DeLauro said the department had suffered “a failure of leadership” and that the next Labor secretary should have “a strong history of supporting American workers, America’s unions and the mission of the Department of Labor.”
The AP reported that Sen. John Kennedy, R-La., said “the secretary showed great wisdom in resigning” after the resignation became public.
ENR reached out to the White House for comment but did not receive a response.
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Why it is important for construction
The transition has implications beyond Washington’s personnel policy. The Department of Labor oversees the Occupational Safety and Health Administration, Davis-Bacon prevailing wage enforcement, workforce learning and training policy, and a wide range of wage and hour, union, and workplace compliance matters. These responsibilities directly affect contractors, skilled trades, labor, and federally funded infrastructure work.
Sonderling’s move to the acting role puts a familiar department official in charge as contractors, unions and public owners watch for any changes to enforcement, prevailing wage oversight, apprenticeship policy and the administration’s broader deregulatory agenda.
Chavez-DeRemer had been a key figure in the administration’s deregulatory push, including efforts to revise or repeal more than 60 workplace rules, including requirements affecting construction lighting and other worker protections.
As ENR previously reported, Chávez-De Remer he came into office with unusual job credentials for a Republican. Both the AFL-CIO and the International Brotherhood of Teamsters were among the unions that had supported her nomination, and she was one of the few cabinet candidates to win bipartisan support in the Senate when she was confirmed in March 2025 after serving one term in Congress representing a swing district in Oregon.
That made his abrupt departure all the more notable as business groups and organized labor begin to push to shape the direction of the department under acting leadership.
