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Labor Department Turmoil: Staff Benched as IG Probes Secretary Chavez-DeRemer

Last updated: January 17, 2026 12:27 pm
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Labor Department Turmoil: Staff Benched as IG Probes Secretary Chavez-DeRemer
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Secretary Lori Chavez-DeRemer faces an inspector-general probe into travel fraud and an alleged inappropriate relationship, prompting at least three staffers to be placed on leave and raising questions about oversight inside the Trump Cabinet.

The Department of Labor has quietly sidelined three employees in less than a week as the agency’s inspector general examines whether Secretary Lori Chavez-DeRemer used taxpayer-funded travel for personal gain and cultivated an “inappropriate” relationship with a subordinate, according to two people with direct knowledge of the probe.

The investigation is the first major ethics test for a Cabinet secretary who, until now, had been touted by the White House as a model of the “tremendous job” President Trump expects from his second-term team. It also lands at a moment when Trump is boasting that turnover in this Cabinet is lower than during his first administration.

How the Probe Unfolded

The chain of events began when the department’s inspector general, Anthony D’Esposito, opened an inquiry into Chief of Staff Jihun Han and Deputy Chief of Staff Rebecca Wright for suspected “travel fraud.” The allegation: the two aides scheduled official events for Chavez-DeRemer that doubled as cover for leisurely trips, sources tell The New York Post and NBC News.

Within days, both aides were placed on administrative leave. A third staffer—whose identity has not been disclosed—was benched later in the week, bringing the number of sidelined employees to three.

The Complaint That Started It All

A formal whistle-blower complaint, filed inside the department late last year, added a second dimension to the probe: claims that Chavez-DeRemer pursued an “inappropriate” romantic relationship with a lower-ranking employee. The inspector general’s office has since folded that accusation into the broader travel-fraud investigation, sources confirmed.

The department’s public affairs office is refusing to discuss “internal or personnel matters,” and the inspector general’s office cites a long-standing policy to “neither confirm nor deny” open cases. Yet the rapid removal of multiple aides signals investigators believe the allegations have enough merit to warrant immediate action.

Why the Timing Matters

Chavez-DeRemer, 57, was confirmed in March on a bipartisan 67-32 Senate vote after serving a single term as an Oregon congresswoman. Both Han and Wright followed her from Capitol Hill to the Frances Perkins Building, creating a tight-knit circle that now finds itself under ethical scrutiny.

The probe also marks the first major stress test for Anthony D’Esposito, the newly installed inspector general who happens to be Chavez-DeRemer’s former House colleague. D’Esposito took the watchdog post only last week, raising questions about how vigorously a former GOP lawmaker will investigate a fellow Republican who once served beside him.

White House Stands Pat—For Now

Press Secretary Karoline Leavitt told reporters Thursday that President Trump is “aware” of the investigation and “stands by the secretary,” though she could not say whether the two had spoken directly about the matter. Trump, who is approaching the one-year mark of his second term, has publicly praised his current Cabinet as “better” than the roster that saw repeated resignations and scandals between 2017 and 2021.

Privately, West Wing aides say the administration is watching to see whether the inspector general’s findings force their hand—either by recommending disciplinary action against Chavez-DeRemer or by uncovering a pattern of misuse that could embarrass the president.

What Happens Next

Federal ethics rules give the inspector general wide latitude to subpoena travel records, calendars, and communications. If investigators substantiate even a portion of the allegations, the matter could be referred to the Justice Department for criminal review or to the Office of Special Counsel for Hatch Act violations.

For now, the day-to-day operations of the 17,000-employee agency rest with acting officials who have been told to preserve all documents related to the secretary’s travel and scheduling. Career staffers, still bruised from the turbulence of the first Trump term, are bracing for another possible Cabinet shake-up—no matter how much the president insists this team is built to last.

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