It was claimed that Ms Chavez-DeRemer took staffers to a strip club while on an official departmental trip, The New York Post reported earlier this year.
There have also been allegations that her staffers may have used official events to facilitate her personal travel, Politico reported. The White House had previously defended Ms Chavez-DeRemer, who denied the allegations.
Confirming Ms Chavez-DeRemer’s departure, Steven Cheung, a White House spokesman, said on X that she had “done a phenomenal job in her role by protecting American workers, enacting fair labour practices, and helping Americans gain additional skills to improve their lives”.
He said she would be leaving government to take up an unspecified role in the private sector.
Ms Chavez-DeRemer’s departure adds to the tumult in Mr Trump’s cabinet, which has seen high-profile changes over the past few weeks.