Former Labor Secretary Misused Government Resources and Drank at Work. Employees Describe ‘Toxic’ Atmosphere In Report.

A sweeping new inspector general investigation concluded that former Labor Secretary Lori Chavez-DeRemer repeatedly violated Labor Department policies while leading the agency, creating what employees described as a "toxic, intimidating and humiliating" workplace.

The findings were detailed in a 44-page report released Thursday by the Labor Department's Office of Inspector General, following an investigation launched January 6 after an anonymous complaint accused Chavez-DeRemer and several senior officials of misconduct. Investigators interviewed 53 current and former Labor Department employees and one employee from another federal agency and reviewed more than 500 documents, images and videos.

Chavez-DeRemer, who served as Labor secretary from March 2025 until her resignation in April 2026, was found to have violated or acted inconsistently with policies across six areas, including workplace harassment rules, travel regulations, alcohol restrictions, use of government resources and federal gift requirements.

The report paints a particularly troubling picture of the atmosphere inside the department. Thirty-eight witnesses consistently characterized the workplace as "toxic, intimidating and humiliating," describing senior officials openly discussing employees' performance problems, including whether staffers had cried during meetings. Other witnesses described widespread fear about losing their jobs.

The inspector general concluded that Chavez-DeRemer failed to comply with Labor Department policy prohibiting harassment. However, investigators stopped short of determining that the behavior met the legal threshold for unlawful discrimination, retaliation, or a hostile work environment under federal law.

Among the most unusual findings involved an April 2025 personal trip to Oregon. According to the report, Chavez-DeRemer requested an off-the-record visit to an establishment that investigators said featured partially nude dancers. She was accompanied by a member of her protective detail with whom investigators said she had developed an "inappropriately close and unprofessional relationship.

"During the visit, Chavez-DeRemer allegedly handed money to another security agent and instructed him to give it to a performer. She later asked the agent to drop additional bills "one by one" onto the partially nude woman, according to the inspector general. The agent initially resisted but complied after seeking guidance from the senior security official.

Investigators found insufficient direct evidence to establish that Chavez-DeRemer's relationship with the security official was romantic or sexual. They did conclude, however, that the relationship was inconsistent with federal impartiality and preferential-treatment standards while the agent exercised authority over her protective detail.

The investigation also substantiated allegations involving alcohol inside Labor Department offices. Witnesses said Chavez-DeRemer and two senior aides regularly drank in her study during working hours and sometimes pressured or ridiculed employees who declined to join them. Investigators said they observed bottles of alcohol in spaces controlled by the officials and found no required written authorization allowing alcohol consumption in the Francis Perkins Building.

Government employees were also allegedly enlisted for distinctly nongovernmental duties. The report says Chavez-DeRemer directed her personal aide and executive assistant to use Labor Department transportation to travel to her residence during working hours and organize her bedroom closet, including hanging laundry and dry cleaning and arranging clothing, shoes and purses. Employees were also instructed to retrieve packages, buy personal items and alcohol, oversee movers, and arrange house-cleaning services.

Investigators additionally found problems with gifts. At least five gifts received by or for Chavez-DeRemer were missing from the department's gift-tracking records, including work boots, baby gifts, cowboy hats, a scarf and an alligator-hide wallet valued at about $200.

Chavez-DeRemer's attorney, Nick Oberheiden, pushed back against suggestions of illegal conduct. "Secretary Chavez-DeRemer did not violate any law," Oberheiden said in a statement to NBC News, adding that she has since "successfully pursued new projects as a private citizen."

Chavez-DeRemer resigned April 20, Her attorney subsequently declined to make her available, according to the inspector general. The report noted that her departure, as well as those of four other officials investigated, occurred before the investigation was completed and did not result from its findings.