Attorneys for Alaina Hampton told the Chicago Tribune that she will receive $75,000 of the settlement.
The remainder will go to attorneys' fees and the Time's Up Legal Defense Fund to support women reporting workplace sexual harassment.
The lawsuit Hampton filed in March 2018 alleged that she was hindered from advancing in the speaker's organization after reporting a top Madigan lieutenant, Kevin Quinn, of sexual harassment.
Hampton said in a statement that she is relieved to move forward with her life.
A Madigan spokeswoman says the organizations are pleased with the settlement. She says Madigan "remains committed to protecting employees, volunteers and candidates."