NEW YORK (JTA) — New York City has dropped a lawsuit against Hasidic-owned stores that posted a dress code for shoppers.

The New York City Human Rights Commission reached a settlement with the seven Hasidic-owned shops in a lawsuit the city had filed alleging that the stores’ posted dress codes implied gender and religious discrimination, according to the New York Daily News.

On Tuesday, the day before a trial was to begin, the city dropped the fines it had proposed and the shop owners agreed that any future signs requesting modest attire would indicate that all people are welcome.

Attorneys for the stores, located in the Brooklyn neighborhood of Williamsburg, argued that the modesty codes are no different than dress codes in upscale establishments.