The MBTA has agreed to pay nearly $500,000 to the senior employee who accused General Manager Phillip Eng of pulling her hair, as part of a settlement agreement that also includes the staffer’s resignation.

The separation agreement includes a $495,000 payment to Gabrielle Mondestin, the MBTA’s chief communications officer who agreed to release “all existing claims” against the agency, including any potential litigation. The senior employee was not named until Friday, upon release of the agreement by the MBTA.

Mondestin’s last day of employment will be Sept. 18. Her separation payout includes a $240,000 one-time supplemental wage payment comparable to her $262,650 annual salary, as listed on payroll records. The remaining $255,000 settlement amount will be provided to her attorney, the agreement states.

The settlement comes about two months after Eng came under fire for a November 2024 incident where he was accused of pulling Mondestin’s hair at a restaurant where T employees and their spouses were having a team dinner.

Eng issued a statement in June, saying that he apologized to Mondestin for his “mistake.” The MBTA downplayed the incident at the time as an “insensitive interaction” that occurred in the context of a larger conversation about hair from earlier in the evening that involved multiple people.

Eng does not admit to wrongdoing as it relates to accusations that he pulled Mondestin’s hair in a joint public statement he and Mondestin issued Friday alongside the separation agreement.

“I regret my actions, have learned from this experience, and appreciate Ms. Mondestin’s focus on assuring that the MBTA learns from it as well,” Eng said.

The MBTA stated in a release that it appreciates Mondestin’s willingness to step forward and bring concerns about her experience to the MBTA’s attention.

The Authority said it recognizes that it can be difficult for employees to speak out about problems in the workplace, and appreciates that Mondestin shared her specific concern, and that the T’s team had an opportunity to listen, respond, and learn from what occurred.

The T said the incident led the agency to reaffirm its commitment to an inclusive workplace where all employees are treated fairly and with respect. The MBTA said it encourages employees to share concerns and insights that can help it strengthen its workplace culture and practices.

Mondestin, who was hired by the MBTA as chief communications officer in 2023, was praised by the T for “her leadership” and efforts to advance the agency’s commitment to timely and transparent communication to the public.

She has agreed to stay on through Sept. 18 to help with the transition.

“While some of my experiences have been difficult,” Mondestin said, “I am tremendously grateful for the opportunity to have served the people of Massachusetts and for the dedicated colleagues and partners with whom I have had a chance to work.

“It was their commitment to serving riders at the MBTA that made this work meaningful,” Mondestin added. “I am also appreciative that the MBTA’s leadership has recommitted today to listening to its employees and working to create a fair and respectful work environment for all. I wish the MBTA and its leadership team the very best going forward.”

WCVB-TV reported in June that Mondestin, then named only as an MBTA employee, had told people the interaction with Eng was not welcome and highly inappropriate.

Mondestin is a Black woman, and Black hair discrimination in the workplace is a civil rights issue tied to race.

The MBTA downplayed the incident, saying in June that Eng was poking fun at his own baldness when the alleged hair-pulling interaction occurred, in the context of a larger conversation about hair that involved multiple people.

MBTA spokesperson Joe Pesaturo said in June, “Two years ago, General Manager Eng had an insensitive interaction with one of his direct reports. He subsequently apologized directly to this employee. Any claims of harassment, discrimination or retaliatory behavior are completely without merit.”

Eng is the state’s top transportation official. Gov. Maura Healey appointed him as general manager of the MBTA in 2023, and interim transportation secretary in late 2025.

He was paid $509,114 last year, which includes a $30,000 retention payment he is eligible for each year he remains with the T, per his contract and state payroll records.