The turn in the Labor Secretary scandal that could leave a mark on workforce awards.
There could be some new scrutiny ahead for DOL grantees, including one of its key apprenticeship grants.
Hey.
This is a special paid edition of JOBS THAT WORK. My usual free Tuesday newsletter will publish tomorrow due to some of the downstream effects of the winter storm on my schedule and, you know, the scandal making things very unpleasant at the Department of Labor.
Also hey.
On Wednesday, I’m moderating a conversation hosted by Craft Education on DOL’s massive $145 million investment in pay-to-train apprenticeship grants—and we’ll be taking your questions. You can sign up here to join us.
From POLITICO’s story on Friday on the latest turns in the growing list of allegations against Labor Secretary Lori Chavez-DeRemer and her top aides (emphasis mine):
At least two other complaints have been filed that claimed Chavez-DeRemer’s aides attempted to improperly steer grant decisions to favored entities. . . .
A meeting of DOL political appointees last Wednesday included a discussion about whistleblower protections, the employee said. DOL recently issued a memo to its employees and contractors stating that nondisclosure agreements that infringe on those rights are unenforceable, according to two copies of the document reviewed by POLITICO.
So, that’s not what you want.
Thus far, the scandal’s potential impact on workforce spending was big picture and down the line—a possible shift in priorities due to who was making calls on the policy. This could create a real tangible impact on workforce grantees. DOL awards have been handled so peculiarly over the last several months that the Inspector General might end up asking some of the grantees involved a few questions. “Attempts” to route money to places doesn’t mean there was wrongdoing, and I’m definitely not saying that. But the Inspector General’s scrutiny isn’t fun.
Below, I unpack what situations could look funny to OIG—and why—using the parts of my brain annexed during my time as an investigative reporter and as an attorney who helped DOL claw back improper grant spending and respond to OIG investigations.