Video of Officer Anthony Figueroa, who is white, tackling Nandi Cain, who is black, to the ground and punching him repeatedly quickly went viral and brought national attention to the city.
Figueroa had stopped Cain for jaywalking.
According to a statement from Cain's attorney, Cain will receive a $550,000 payout. On top of that, Councilman Allen Warren confirmed to FOX40 that the City of Sacramento agreed to policy changes within the police department.
"The settlement was appropriate," Warren said. "I think clearly the young man was not doing anything inappropriate."
The changes include new implicit bias training and a cultural immersion program for the whole department. Both are meant to help officers address people who come from a different ethnic background than they do.
Officer Figueroa won't be allowed to return to duty in Del Paso Heights until he finishes both of those training programs.
"I do believe he’ll probably be a better police officer as a result of this process," Warren told FOX40.
Cain's attorney, John Burris, maintains Officer Figueroa was at fault -- that his client never jaywalked and was actually targeted by the officer.
"He escalated the situation when he should have deescalated," Burris said.
Still, Burris is hopeful about the direction of the Sacramento Police Department, especially after changes prompted by Cain's settlement.
"It brings forth an attempt to bring about positive reforms that could have the impact of preventing this kind of conduct from occurring in the future," Burris told FOX40.
Neither the city manager's office or the police department would comment on the settlement until it was officially signed.