The town will be looking for a new clerk but first must determine if the position needs to be full or part-time.
Hodges spent some 16 years with the town government and had a reputation as a strong-willed official with an acerbic tongue and hard-edged opinions.
Although Hodges is no longer with the town government, she has until July 15 to decide on whether or not to accept a severance package. Such packages normally require an agreement to not fight the firing in court or elsewhere.
Floyd mayor Will Griffin said he could not discuss details of the decision to fire Hodges but said it was a unanimous decision of the town council as a whole.