White House Communications Director Steven Cheung said in a social media post that Chavez-DeRemer “will be leaving the Administration to take a position in the private sector” and that Deputy Labor Secretary Keith Sonderling will serve as acting labor secretary. Cheung also praised her tenure, saying she had “done a phenomenal job” leading the agency.

In a statement reported by Reuters, Chavez-DeRemer said, “While my time serving in the Administration comes to a conclusion, it doesn’t mean I will stop fighting for American workers. I am looking forward to what the future has in store as I depart for the private sector.”

Multiple media outlets have reported on the inspector general's probe, which centers on whistleblower allegations of professional misconduct, including claims that Chavez-DeRemer had a relationship with a member of her security team and used department resources for personal trips. 

Reuters also reported she was expected to be interviewed regarding the matter within days. The Associated Press separately reported that the allegations also included claims she drank alcohol on the job and abused the power of her office.

Chavez-DeRemer is the third Cabinet secretary to leave Trump’s second-term administration, 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 produced sharply different reactions from organized labor, contractors and lawmakers.

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AFL-CIO President Liz Shuler said in an April 20 statement that, at a time of rising costs, job insecurity tied to AI and broader economic uncertainty, the country needs “a labor secretary who understands working people and will work to make our lives better—not just be a rubber stamp for corporations’ wish lists and gut the protections we count on.”

Associated General Contractors of America, by contrast, emphasized continuity under Sonderling. Brian Turmail, the group’s vice president of public affairs and workforce, said AGC is “eager to work with acting-Secretary Sonderling and his team to continue to find ways to rebuild a pipeline for preparing future workers for high-paying careers in construction.”

Turmail added that AGC has “built a strong and productive relationship with Deputy Secretary Sonderling” and plans to keep working with the administration and Congress on lawful immigration pathways to help ease labor shortages and on streamlining regulation “so workers remain safe, healthy and secure in a way that ensures prosperity for workers and the broader economy.”

The resignation also prompted 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 misuse of authority and alleged favoritism in grants to inappropriate behavior with subordinates.

DeLauro said the department had suffered from “a failure of leadership” and that the next labor secretary should have “a strong history of supporting workers, America’s unions and the mission of the Department of Labor.”

The AP reported that Sen. John Kennedy, R-La., said that “the secretary demonstrated a lot of wisdom in resigning” after the resignation became public.

ENR requested comment from the White House but did not receive a response.

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Why It Matters for Construction

The transition carries implications beyond Washington personnel politics. The Labor Dept. oversees the Occupational Safety and Health Administration, Davis-Bacon prevailing wage enforcement, apprenticeship and workforce training policy and a wide range of wage-and-hour, union and workplace compliance matters. Those responsibilities directly affect contractors, specialty trades, construction labor and federally funded infrastructure work.

Sonderling’s move into the acting role puts a known department official in charge as contractors, unions and public owners watch for any shift in enforcement, prevailing wage oversight, apprenticeship policy and the administration’s broader deregulatory agenda.

Paul DeCamp, a wage-and-hour attorney at Epstein Becker Green who led the Labor Dept.’s Wage and Hour Division during President George W. Bush’s second term, said the first signs of Sonderling’s priorities are likely to come through rulemaking already in the pipeline. 

“Initially, watch for the Department under Acting Secretary Sonderling to focus on advancing items already on the regulatory agenda,” DeCamp said, pointing to apprenticeship programs, industry-specific OSHA standards and wage-and-hour rules on joint employment and independent-contractor status. 

He added that enforcement should remain important, though staffing levels could affect its reach, and said he would not expect significant near-term Davis-Bacon changes because of bandwidth constraints.

Chavez-DeRemer had been a key figure in the administration’s deregulatory push, including efforts to revise or repeal more than 60 workplace rules, among them requirements affecting construction-site lighting and other worker protections.

As ENR previously reported, Chavez-DeRemer entered office with unusual labor 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 nominees to win bipartisan Senate backing when she was confirmed in March 2025 after serving one term in Congress representing an Oregon swing district.

That made her abrupt departure more notable as employer groups and organized labor alike begin pressing to shape the department’s direction under acting leadership.