DETROIT (WWJ) – An office manager for former Detroit City Councilwoman Martha Reeves has reached a $300,000 settlement with the city in a federal lawsuit.

Carolyn Chambers filed the suit claiming she was demoted for failing to pay the owner of a local lounge and city employee for time he didn’t work. According to the suit, the lounge owner hurled racial epithets at Chambers and she complained to Reeves, saying it created a hostile work environment. The next day, Chambers, then 62, said she was notified her salary was cut in half.

Chambers’ attorney Deborah Gordon said the settlement includes the reinstatement of lost retirement benefits.