NEW YORK — New York City dropped a lawsuit against seven Hasidic-owned stores in Brooklyn that posted dress codes for shoppers.

The city’s Human Rights Commission reached a settlement with the shops in the Williamsburg neighborhood in a lawsuit alleging that the 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 store owners agreed that any future signs requesting modest attire would indicate that all shoppers are welcome.

Attorneys for the stores argued that the modesty codes are no different than dress codes in upscale establishments.