The Department of Labor has a new boss: What to watch

The Senate on Monday officially confirmed Lori Chavez-DeRemer to lead the Department of Labor (DOL), putting her in charge of nearly 16,000 employees and a $14 billion budget. 

Why it matters: The DOL oversees a range of workforce initiatives, including wage regulations, apprenticeships, and unions, that directly impact employers and employees alike.

As Chavez-DeRemer balances supporting the president’s agenda while navigating his plans to reduce the federal workforce, here are a few key areas for contractors to watch.  

Apprenticeships 

About 214,000 16 to 24-year-olds were enrolled in apprenticeship programs in 2022, more than double the amount from the decade prior. 

In a hearing before being confirmed, Chavez-DeRemer emphasized apprenticeships as a priority she strongly supports. “Not everybody is going to get that four-year degree,” she noted, expressing her goal to connect business owners with skilled local talent.

She added that she wants to “have… American workers upskilled and re-skilled,” believing that “this is going to be great for America to grow that economy and then share in that profit with the employees.”

Unions

While Chavez-DeRemer was one of three House Republicans who previously supported legislation to boost union membership, she partially walked back her position during her hearing. 

“I recognize that the bill is imperfect, and I am no longer a lawmaker,” she said. “If confirmed, my job will be to implement President Trump’s policy vision, and my guiding principle will be President Trump’s guiding principle: ensuring a level playing field for businesses, unions and, most importantly, the American worker.”

Despite the shift, her past positions suggest a more “worker-friendly Department of Labor than is typical for Republican administrations,” as HR Dive notes, adding that she emphasized “the American worker deserves to be paid attention to.”

Wages

When asked about raising the federal minimum wage, which, although many states have their own wage laws, still stands at $7.25, Chavez-DeRemer acknowledged that it hasn’t changed since 2009 but deferred the question, stating, “That is an issue for Congress to determine.”

Overtime Pay 

A November 2024 decision overturned a previous Department of Labor rule that would have extended overtime pay eligibility to four million additional workers. While not specifically addressed in her hearing, two related lawsuits remain active, and her leadership will likely influence the outcome — in either direction. 

The bottom line: As one of Trump’s more surprising cabinet picks, Chavez-DeRemer has pledged her support for the president’s agenda, yet her history suggests potential nuances ahead. 

• “As promised, I’ll work tirelessly to put American Workers First by fighting for good-paying jobs, safe working conditions, and secure retirement benefits,” she said Monday.