Abercrombie & Fitch will change its "look policy" and allow employees to wear hijabs after a three-year legal battle with two Muslim women was settled out of court.
The settlement requires Abercrombie to report religious accommodation requests and discrimination complaints to the Equal Employment Opportunity Commission for three years, and includes $71,000 in compensation for the two women. The settlement also averts a Sept. 30 trial.
Abercrombie fired Umme-Hani Khan, a stockroom worker in its San Mateo, Calif., store, in 2010 for refusing to work without her religious headscarf. Khan, who had worked at the store for four months without incident, filed a religious discrimination complaint with the EEOC, which sued the retailer in 2011.