Hanley was fired for cause, effective immediately, at the district's Tuesday night board of directors meeting.
The board said an independent investigator had found that three allegations made against Hanley were sustained.
Those involved covering up sexual harassment, bullying and interfering with a governmental promotion board.
Board Chair Greg Costanzo made the motion to fire Hanley.
"The allegations are, in this situation, are egregious. They've never been allowed in any type of public service to include fire, police or anything in private or public," he said.
Five other allegations against Hanley have yet to be investigated.
The board made the unanimous decision after emerging from a two-hour executive session whose agenda included considering dismissal or discipline of, or to hear charges or complaints against, an officer or employee.
Hanley did not respond to a request for comment by phone and text after the evening meeting.
IAFF Local 2596 President Brady Graham said he sees this decision as a step forward for the district.
"I think it is a beginning to us rebuilding from just the absolute brokenness caused by mismanagement of an organization, and mismanagement to an extreme extent," he said.
Interim Chief Aaron Bustard agreed.
"There's a lot of healing that needs to happen. And by moving forward, I think it's the best way that we're going to see a lot of this start to happen," he said.
In February, the union had asked the board to take action after repeated complaints about inappropriate conduct in the department. The union said the behavior had been going on for years and had created 鈥渁 toxic culture of bullying and harassment.鈥� At a February meeting, Graham said the district had failed to address the behavior, which included sexual harassment.
Then in March, three out of the five members of the district's board suddenly resigned.
A month later, Jackson County Commissioners appointed three new members to the board.
The district operates three fire stations in Phoenix, Talent and unincorporated Ashland, serving over 23,000 people.
On Tuesday, the board also discussed two other instances of potential impropriety in the district.
One involved a $10,000 check from the Firehouse 5 Foundation, a nonprofit in Phoenix that supports the district's firefighters. Board members expressed concern about how or whether the check was used.
A second concern focused on an unnamed former board member who had potentially used property that belonged to the district in a private manner.
The board said the district is looking into these matters.
