Dewey Beach will pay the legal fees for Town Manager Marc Appelbaum if it needed to do so.
The town commissioners voted unanimously but said it will wait two business days before providing the financial compensation.
Rick Cross the lawyer for those who have filed complaints that include sexual harassment and racial discrimination told WBOC that the town agreed to withhold payment until the issue has been decided by the courts.
The television station says Cross believed that Appelbaum would not see any compensation because he was confident his clients would win their case.
Meanwhile, the state’s Public Integrity Commission is still investigating the allegations.
In addition, the town commission has yet to vote on recommendations by an independent investigator such as a formal reprimand.