New York Attorney General Eliot Spitzer has settled charges that Federal Express Corporation practiced religious discrimination when it fired several employees who wore their hair in dreadlocks as an expression of their religious beliefs--­and refused to cut it.

As part of the settlement, FedEx agreed to make changes to its Personal Appearance Policy, educate managers about requests for religious accommodation, and periodically inform the Attorney General's office about its handling of requests for accommodation involving the wearing of dreadlocks.

Spitzer began an investigation in 2000 when his office was approached by several former FedEx Express employees who wore their hair in dreadlocks as an expression of their religious beliefs. These employees had been terminated by FedEx Express because of their refusal to cut their hair. After conducting an investigation, Spitzer filed a lawsuit against FedEx Express in 2001.

Spitzer said that FedEx had voluntarily addressed many of the concerns underlying the lawsuit before the settlement was reached. He said FedEx revised its policy to allow employees to request an exemption from the policy based on religious reasons.

"Federal Express prides itself on being an inclusive company," Spitzer said. "The policy and practice memorialized in this agreement go a long way toward achieving this worthwhile goal."