Chavez-DeRemer’s Future Depends on Trump, Not Internal Probe

Whether an internal investigation into Labor Secretary Lori Chavez-DeRemer and her staff threatens her spot in the presidential cabinet will ultimately come down to President Donald Trump.

Chavez-DeRemer’s chief of staff Jihun Han and deputy chief of staff Rebecca Wright were placed on leave this week after a complaint was filed with the inspector general’s office alleging Chavez-DeRemer engaged in an inappropriate relationship with a staffer and committed travel fraud.

The DOL’s watchdog office doesn’t have the power to remove Chavez-DeRemer, however it does have a plethora of investigative powers that could make the secretary’s position untenable, labor observers say.

Working in her favor is the difficult nature of replacing a Republican labor secretary who boasts support from both business groups and unions. As a Latina from a suburban swing district in Oregon, she came to represent the broad coalition who lifted Trump to a second term. And with a slim GOP majority in the Senate, the president won’t be eager for a confirmation battle.

“He doesn’t want to try to find somebody who’s acceptable to his constituents in unions, as well as his management-side interests,” said Joseph Schmitt, a management-side attorney with Nilan Johnson Lewis PA. “He was able to thread that needle once.”

For now, the labor secretary’s standing with the president appears unshaken. White House spokesperson Taylor Rogers said Chavez-DeRemer has Trump’s “full support.”

IG Investigations

The complaint, first reported by the New York Post, accuses Han and Wright of fabricating work trips for Chavez-DeRemer so she could spend time with family and friends. She also allegedly invited a staffer to her hotel room at least twice, in addition to at least three other encounters at her Washington, DC, apartment, the NY Post reported.

If the investigation turns up new damaging information and GOP leaders in Congress begin speaking out against Chavez-DeRemer, it would be difficult for her to keep her post, said a former US government official who didn’t want to speak publicly about the investigation.

Former Labor Secretary Alex Acosta resigned during the first Trump administration after facing criticism for how he handled the sexual misconduct investigation into Jeffrey Epstein when he was a district attorney in Florida. He came under scrutiny by DOJ’s Inspector General and lost the favor of the president.

Inspectors general routinely conduct audits of agency programs to root out inefficiencies and improper placement of public dollars, but they can also look into allegations of misconduct that violate department policies.

Probes can be initiated through a confidential tip line, by members of Congress, or independently by the IG. According to Will Fletcher, president of the Association of Inspectors General, IG officers have the power to obtain all government documents and records, as well as subpoena external entities to get things such as phone or bank records.

They will also interview department staff, who are required to participate in investigations, Fletcher said.

The length of probes can vary, depending on the complexity of the case, but Fletcher said the allegations against Chavez-DeRemer seem “straightforward.” Inspectors will then put together a report, which is sent to department management.

In this case, where the secretary is subject to the probe, reports will likely be sent to Congress and the Deputy Secretary of Labor Keith Sonderling.

An agency spokeswoman declined to comment Wednesday, saying the department doesn’t speak about personnel matters. She also didn’t comment on whether Chavez-DeRemer would continue with a 50-state listening tour billed as a way to connect with rank-and-file workers and tout Trump policies such as no taxes on tips and overtime.

A spokesperson for the DOL’s Office of Inspector General also declined to comment, saying it would neither confirm or deny the existence of the complaint or investigation.

Public’s Trust

The inquiry also puts pressure on the DOL’s newly confirmed Inspector General Anthony D’Esposito.

The former New York congressman faced scrutiny in his confirmation process about his ability to remain neutral, given his political ties to Trump and the possibility he may again run for office.

During his single term in Congress, D’Esposito was accused of hiring his fiancee’s daughter and another woman with whom he was having an affair, following a New York Times investigation. D’Esposito has denied any wrongdoing.

D’Esposito was nominated to fill the post formerly held by Larry Turner, who Trump fired in January, along with over a dozen other inspectors general in a move that raised alarm bells across the government.

Fletcher said the current political climate threatens the reputation and integrity of the IG offices.

“We’re in this moment where institutions are being questioned and so throughout the levels of government, independent oversight is having a moment where it is needing to defend and reassert what it stands for,” he said. “Every step backwards requires three or four steps uphill in terms of regaining the public’s trust.”