The Pine City school district has agreed to pay $65,000 to a student who was bullied because of her race during the 2020-2021 school year.

The settlement was announced Thursday by the Minnesota Department of Human Rights. A department investigation found multiple students repeatedly bullied and harassed a seventh-grader because of her race. School officials violated the state's Human Rights Act by "failing to timely and appropriately stop the racial harassment," according to a statement from the department.

"Today's announcement serves as a reminder to schools across the state of their legal responsibilities under the Minnesota Human Rights Act to proactively prevent and stop harassment and discrimination," Minnesota Department of Human Rights Commissioner Rebecca Lucero said in the statement.

Pine City Superintendent Cindy Stolp said the settlement addresses claims related to student-to-student interactions "during the height of the pandemic when students attended some or all of their classes from home."

"As part of the settlement, the district denied any violation of the law," Stolp wrote in a statement. "The district, however, remains focused on continued improvement, including fostering respect and understanding among students."

The investigation uncovered that a seventh-grader was repeatedly bullied and harassed over the course of months by more than 10 students, and the student and her parents "persistently" reported the harassment to school leaders.

The department did not specify what constituted the ongoing harassment but said the seventh-grader was "greatly impacted and missed several weeks of school."

Across Minnesota, more than half of eighth-graders who responded to the most recent Minnesota Student Survey in 2022 reported being bullied in the past month.

The Human Rights Department's investigation into Pine City found the district failed to follow its own harassment policy, which requires employees to notify the superintendent of a harassment report.

As a part of the settlement, Pine City Public Schools must change its policies and procedures to prevent further discrimination and harassment. Department officials said they will monitor the district's compliance through the 2025-2026 school year.

Over the past four years, the district has hired a new administrative team, increased training and improved processes to address claims of discrimination and bullying, Stolp said.

"We are committed to continuing to work closely with students, parents, and the community to create a positive school culture for all students," she said.