The EEOC recently released guidance for employers on how Title VII applies in regard to religious dress and grooming. Many employers likely have been or will be confronted with situations in which employees will come to work wearing certain religious items that might conflict with employer dress codes or standards. This publication from the EEOC does a good job walking employers (and employees) through the federal discrimination laws and what needs to be done when religious dress and grooming become a potential issue at work.
It is important for employers to remember that federal discrimination laws require that employers make exceptions to dress codes and grooming requirements to accommodate employees' religious standards, unless doing so would cause "undue hardship" for the employer.
A link to the EEOC publication can be found here: http://www.eeoc.gov/eeoc/publications/fs_religious_garb_grooming.cfm
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