Tonya Battle, an African-American nurse at Hurley Medical Center in Flint, said she was caring for the infant at the time of the father's request -- which the nurse manager allegedly complied with.
After the man asked that no African-American staff members care for his child, he allegedly showed off a swastika tattoo.
Battle and hospital officials announced the settlement Friday at a news conference, The Detroit News reported.
Terms of the settlement were not reported.
Aaron Carter is still in love with Hilary Duff
Millions of Getty images now available for free via embed tool