LOS ANGELES — Playboy has settled a sexual harassment lawsuit filed by a former “Night Calls” producer who alleged that the host repeatedly demanded on-air to “ass-wax” her.

Former producer Terri Hughes said in her suit that “Christy Canyon repeatedly made this demand throughout the three-hour show, forcing plaintiff to repeatedly refuse,” and that she created a hostile work environment because Hughes is black.

Attorney Michael Fattorosi, who represented Hughes, filed dismissal papers Sept. 25 at Los Angeles Superior Court, and Playboy recently withdrew its motion for summary judgment, which argued that Canyon “made no demand at all” for an ass-waxing and that her behavior did not result in sexual harassment.

Fattorosi was unavailable for XBIZ comment Wednesday morning.

The settlement, which was not disclosed, avoids a jury weighing the fate of the case.

Besides Playboy, Hughes also named in her complaint Farrell Hirsch, a Playboy Radio executive producer, and Canyon, whose real name is Melissa Conway.

Hughes worked on “Night Calls” from January 2008 until August 2008, when she resigned. After she exited, she filed complaints against Playboy, Canyon and Hirsch with the state Department of Fair Employment and Housing, exhausting her administrative remedies. The agency advised Hughes to file suit.

Playboy, in an earlier filing, said that “Night Calls is a show about sex. It is hosted by former adult film stars who talk vividly about sex, and it is designed to appeal to listeners’ sexual fantasies.”

Playboy also said that Hughes — aka “Sexy Terri” on the show — took part in at least one “Wax My Ass” segment on “Night Calls” with Canyon, and that she was a “knowing and active participant.”

But Hughes said that Canyon went beyond company policy on sexual harassment even after Playboy tightened allowable behavior on the show.

“Plaintiff is informed and believes that Playboy was forced to implement a ‘no penetration’ policy based upon the behavior of Christy Canyon during live broadcasts of ‘Night Calls’ prior to plaintiff’s employment at Playboy,” the filing said.

“On numerous occasions and on an on-going basis, plaintiff witnessed Christy Canyon continuing her outrageous behavior and creating a sexually hostile environment by, among other things, exposing her genitals and breasts to guests and co-workers, making requests to guests and co-workers to touch her genitals and breasts, and masturbating herself with her own hands as well as with various sex toys during live broadcasts of ‘Night Calls.’”

The suit also alleged that Playboy “constructively terminated” Hughes because of her gender and race.