NEW YORK, May 12 (UPI) -- American Eagle Outfitters says it has agreed to drop a rule that banned men from wearing women's clothing and women from dressing as men.

The agreement was reached with New York Attorney General Andrew Cuomo's office after the activist group Make the Road New York complained about discrimination against transgender job hunters.


The retailer, without admitting any wrongdoing, signed a settlement deal promising to change its policies and employee handbook. The changes include dropping the gender clothing rule while agreeing to train staff on transgender issues, such as which pronouns to use when addressing workers and customers, The New York Daily News reported Wednesday.

"We wholeheartedly believe that transgender individuals should be treated equally," an American Eagle spokesman said in a statement.

The settlement is the first against a retailer under a state law barring employers from discriminating against applicants because of gender identity.