Coupeville to Pay $285,000 to Settle Former Clerk's Lawsuit

Coupeville reached a $285,000 settlement with former clerk treasurer Jennifer Carpenter over allegations that Mayor Molly Hughes physically harassed her and subjected her to discriminatory treatment, according to documents obtained through a public records request. The settlement was handled and paid by the Washington Cities Insurance Authority, and Carpenter formally dismissed the lawsuit with prejudice in November 2025.

The complaint, filed in July 2024, detailed allegations that Hughes "nonconsensually and repeatedly physically touched Carpenter’s 'buttocks, shoulders, back, arms and her hair,'" behavior Carpenter described as "offensive, unwelcome and harmful." The suit also alleged that through "yelling, inappropriate touching, rudeness and derogatory comments," Hughes created a hostile work environment based on gender, and made "stereotypical comments about women in the workplace," including remarks about women with or planning to have children and female employees using leave to care for children or attend to "feminine issues."

Carpenter's filing included claims beyond harassment, alleging she regularly worked weekends and more than 40 hours per week without overtime, had pay docked or was required to make up time missed while on paid medical leave, and did not receive all required mid-shift and lunch breaks. The complaint said male colleagues supervised by Hughes did not experience the same hostile conditions. Carpenter took paid family medical leave during her tenure to care for her special needs daughter and raised complaints to a town council member while on leave in 2023.

The Town of Coupeville's legal response denied the allegations. In court filings the town denied that Hughes physically harassed or behaved in a hostile manner toward Carpenter, denied making stereotypical comments or refusing breaks, and denied terminating Carpenter in "retaliation." The settlement agreement does not include an admission of wrongdoing by Hughes or the town.

For Island County residents, the case highlights how personnel disputes within small-town government can have financial and reputational consequences. Although the insurer paid the settlement, such claims can affect future premiums and public trust in municipal leadership and workplace safety. The dismissal with prejudice prevents Carpenter from pursuing the same claims again, concluding the legal dispute.

The settlement document was produced by the Washington Cities Insurance Authority after redacted emails were provided in response to a public records request. Hughes did not respond to a request for comment by deadline.