President Donald Trump says Labour Secretary Alexander Acosta is stepping down from his role.
The move comes following criticism of his handling of a plea deal with wealthy financier Jeffrey Epstein, who is accused of sexually abusing dozens of underage girls.
President Trump announced the news with Mr Acosta by his side at the White House as he left on a trip to the Midwest.
Mr Acosta says stepping aside was the right decision.
He was the US attorney in Miami when he oversaw a 2008 non-prosecution agreement with Epstein.
Epstein avoided federal charges and served 13 months in jail.
Similar charges recently filed against Epstein by federal prosecutors in New York had put Mr Acosta’s role in the 2008 deal under renewed scrutiny.
- Press Association