Pam Johnson won the Hednesford North seat with 290 votes after it was vacated when Conservative Matt McCall resigned.
Chase Community Independents candidate Darrell Mawle came second on 228 votes, with Tory candidate Laura Harrison third on 208 votes.
Independent Christopher Harborow brought up the rear with 35 votes. The turnout was 14.35 per cent.
The result sees Labour increase its number of councillors on the authority to nine.
Meanwhile the ruling Conservative group is now down to 23 councillors following the decision of Cannock West councillor Doug Smith to stand down.