A document filed in court said that the case was settled after attorneys for both parties met with a judge at the US District Court in Natchez, Mississippi.
The settlement details have not been disclosed.
Burks claims that Winfield subjected her to unwanted sexual advances after she ended a consensual affair with the mayor.
She alleges that Winfield created a hostile work environment and retaliated against Burks when she rejected Winfield’s sexual advances.
Winfield filed the sexual harassment lawsuit in February 1, 2012.