TUCKER, Ga. -- An Atlanta-based restaurant chain is being sued after a job applicant claimed it denied employment to her because of her religious headdress.

The Equal Employment Opportunity Commission has filed a religious discrimination lawsuit against the Folks Southern Kitchen restaurant chain.

Soumaya Khalifa, a Muslim, is required by her religion to wear a headdress in public.

“The headdress is a sign of modesty. It's part of the dress code for women, for Muslim women,” Khalifa said.

Her attorney said she was offered a cashier job in October 2006, only to be told two days later that the offer was revoked.

“Ultimately, the conversation gravitated toward the headdress she was wearing and then she was told 'You can't wear that, that isn't consistent with our dress code',” said EEOC attorney Robert Dawkins.

After a lengthy investigation, the EEOC filed a religious discrimination lawsuit against Folks. The agency is seeking tens of thousands of dollars in back pay and damages.

“We have a virtual melting pot of individuals in our society with various religions, and the law says you have to acommodate those religious beliefs if they don't work in undue hardship on the employer,” Dawkins said.

“This country is built on religious freedoms and all kinds of freedoms and to hear about something like that happening is really against what this country stands for,” Khalifa said.

The EEOC tried to come to a settlement with Folks before filing the lawsuit, agency officials said.

CBS 46 contacted Folks, but company officials said they would not comment about the case until they contacted their attorneys.