LAWRENCE (CBS) – Two teachers fired from a Lawrence Catholic school after announcing they’re expecting a baby out of wedlock have reportedly reached a settlement with their former employer.

Sean Houlihan and Natalie Ferland were both terminated from Lawrence Catholic Academy in November for violating their contracts.

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After making their story public last week, a local attorney offered his services and the couple settled with the school, rather than taking administrators to court.

According to The Eagle-Tribune, the couple will now continue to get their paychecks and health insurance until August 31. Ferland is due in June.

Their official records will also say they resigned rather than being fired.

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There was no comment from the school, parish or the Archdiocese of Boston.

Houlihan and Ferland are engaged and plan to get married in 2015.

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