As part of the settlement, Abercrombie agreed to change its policy governing an employee's appearance. The company will also pay the women a combined $71,000 and attorney fees.
Hani Khan, who said she was fired from the Hollister store in San Mateo in 2010 because she wore a hijab, said she's happy with the settlement.
"It wasn't about the money, it was about the policy and I was fired because of the 'look policy' and now that they've had to change that, I'm really happy. If it could happen to me in the Bay Area it could happen to anyone. I'm not anyone different. So, I felt it was right for me to stand up and say something about it," said Khan.
Abercrombie's new policy will establish an appeals process for workers denied religious accommodations.