The city of Seymour has agreed to pay $4,000 to settle a lawsuit filed by a former employee who claimed city officials had retaliated against him after he reported a co-worker made racist comments.

Earlier this month, the two parties notified the U.S. District Court for the Southern District of Indiana they had reached a settlement and planned to ask the court to dismiss the lawsuit.

The city, however, initially refused to release the terms of the agreement, claiming it was exempt from disclosure under Indiana public records law. The plaintiff’s attorney also declined to discuss the terms of the deal because “Seymour insisted that it be confidential.”

But after The Republic signaled to city officials that the matter would be turned over to Indiana’s public access counselor, Seymour relented and provided a copy of the settlement.

Under the terms of the agreement, the city does not admit any wrongdoing and “denies said allegations and claims.” The $4,000 will come from the city’s insurance policy, city Attorney Christina Engleking said.

The deal follows a lawsuit filed in September 2021 in which former city department of public works employee Gary Ford contended that among other things, he had been subjected to intimidation and false accusations of wrongdoing after city officials were required to participate in a federal discrimination training class prompted by racist comments allegedly made against him, according to the lawsuit.

Ford, who is Black, alleges in the lawsuit that a co-worker named Joe Williams used a racial slur and asked him “whether he was upset there was no fried chicken, watermelon or Kool-Aid for lunch,” according to the lawsuit. Ford allegedly reported the incident to the city’s human resources department.

As a result of the complaint, Williams and other city officials were required to participate in a U.S. Equal Employment Opportunity Commission discrimination training class, according to court records.

During the class, Williams allegedly acknowledged he used the racial slur, claiming his use of the word “was a joke,” according to the lawsuit. Williams, however, denied making the comment about the food.

After the class, “Ford was retaliated against by other Seymour employees with intimidation and false accusations of wrongdoing as well as frequent and uncomfortable calls to the human resources department,” according to the lawsuit.

Ford claims the alleged retaliation led him to resign April 25, a little more than a month after he was hired, in what the lawsuit says was a “constructive discharge.”

A constructive discharge is when an employee resigns because work conditions were so unbearable that “a reasonable person in the same situation would quit,” according to the Cornell Law School Legal Information Institute.

In September, the city of Seymour filed a response to the lawsuit, denying allegations it engaged in or was aware of discrimination, retaliation or false accusations against Ford, according to court filings. The city also disputed Williams’ resignation was a constructive discharge.

The city, however, acknowledged Ford “reported various allegations” during his tenure at the department of public works and he had filed a complaint with the U.S. Equal Employment Opportunity Commission.

In the court filing, the city said it was aware Williams denied making the comment about the food but did not know about or have enough information to admit or deny that Williams openly acknowledged using the racial slur during the discrimination class.

Ford was seeking lost wages and benefits and compensatory damages for mental anguish and other harm he says he suffered, according to court records.