A majority of US Supreme Court justices appear to be supportive of an argument that Abercrombie & Fitch discriminated against a Muslim teenager.
Samantha Elauf argued she was denied a job because her headscarf conflicted with the company’s dress code.
Abercrombie disputes the allegation, arguing Ms Elauf did not ask specifically for a religious exemption.
Questions from some of the justices were in favour of Ms Elauf, but their final decision will be made in May.
The clothing retailer has since changed its policy on headscarves but continues to fight the case in court.
In a statement on Wednesday, the firm said it had a “longstanding commitment to diversity and inclusion” and had “granted numerous religious accommodations when requested, including hijabs”.
US law requires that employers must “reasonably accommodate” an employee’s religious beliefs, as long as it does not provide an undue hardship to the business.