American Eagle Outfitters has agreed to alter a company policy that discriminated against transgender people, the New York Daily News reported.

The clothing giant will end a policy that imposed gender specific clothing requirements on employees.

The change is a result of an agency probe launched last year by New York Attorney General Andrew Cuomo. Cuomo's office launched the investigation after wage rights group Make the Road New York alleged the retailer was discriminating against transgender job seekers. New York protects applicants from gender identity-based discrimination.

“To avoid further expenses and the distraction of a prolonged argument, [we have] agreed to a compromise settlement in this case, with the understanding that AEO is not admitting to the findings,” a company spokeswoman said in a statement.

“We wholeheartedly believe that transgender individuals should be treated equally,” she added.

Under the settlement, American Eagle Outfitters has promised to change its employee “personal appearance” policy and has agreed to train its staff on transgender issues.