At a city council meeting Thursday night, an amended complaint filed on behalf of Anthony Paparo will be reviewed.
The complaint alleges Paparo was not paid for 776 hours worth of wages after he was fired in February.
It also accuses four council members of defamation and other allegations.
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Paparo was fired over allegations of "wage theft" that reportedly cost the borough more than $380,000.
The chief, who is white, has previously stated that his job was on the line over his race.
Borough Council President Sharon Council-Harris said race was never the case.
"It was not based on race. It was not based on his color. It was based on whether he was qualified to take the job," said Council-Harris.
The council voted to make Lt. Shawn Burns interim police chief.
A lawsuit filed on behalf of Paparo is seeking backpay, reinstatement of his job and other punitive and compensatory damages.