Clothing retailer Abercrombie & Fitch will permanently drop its ban on headscarves under a settlement announced Monday and will pay a total of $71,000 to two Bay Area Muslim women who lost job opportunities because of their attire.

The agreement comes three weeks after a federal judge ruled that Abercrombie & Fitch violated the religious rights of one of the women, Hani Khan, by firing her after she refused to remove the hijab she wore while working as a stockroom clerk at the retailer's Hollister Co. outlet in San Mateo.

"I am hopeful that my struggle and this victory will ensure that what happened to me at Abercrombie never happens to any other employees there," sad Khan, who will receive $48,000 in the settlement. "All Americans have the right to religious accommodation in the workplace."

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