The City of Boston has agreed to pay $1 million to a former city employee who says she was sexually harassed by former city health chief Felix Arroyo, and then subsequently retaliated against when she spoke to officials about her concerns.
A city spokesperson confirmed in a statement to NBC10 Boston on Friday that "The City has come to a mutually agreeable settlement for this case that dates back to 2017 under a prior administration."
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Through this settlement with Hilani Morales, the City avoids substantial additional costs from further litigation, the spokesperson added.
The settlement agreement shows that the city will issue the payment in two checks, the first payable to "Tocci & Lee, LLC) in the amount of $356,000 as attorneys' fees and costs, and the second payable to Morales in the amount of $644,000 for alleged emotional distress damages.
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Morales filed the lawsuit in March 2018 and alleged three counts against the city and Arroyo, including a hostile work environment based upon sex; quid pro quo sexual harassment; and retaliation.
Morales had previously worked for Arroyo and she claimed in her lawsuit that he manipulated her into a sexual relationship with him in 2016 and harassed her at work. She further claimed the city demoted her and moved her to another department when she reported Arroyo.
Following a four-week investigation into the accusations, Arroyo, who has said in the past that the allegations are baseless, was fired from his position as health and human services chief in August 2017 by then-mayor Marty Walsh.
He later brought a counterclaim against Morales for defamation that has not been resolved to date, and is not a part of this agreement. The defamation trial is scheduled for next year.
