The council's vote Monday night rejects a proposed settlement to rehire Brad Thoma at a lower rank and give him about $275,000 in back pay.
The Washington State Human Rights Commission mediated the settlement and Mayor David Condon had signed it. But last week Condon asked the council to delay a vote pending a new commission review.
Thoma's lawyer Bob Dunn told KREM-TV his client plans to sue Spokane if the settlement isn't approved.
The Spokesman-Review said that Thoma received a deferred prosecution for a 2009 DUI arrest. He was fired after declining other city work during the time he would have been required to install a breath analyzer to start his car.
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