The city of Wilmington has agreed to revise its dress-code policy at public pools and pay $50,000 to resolve claims that employees had discriminated against Muslim children, who were asked to leave for wearing cotton clothes while swimming last summer.

A Delaware federal judge Thursday approved the settlement, which requires the city to train workers on new regulations that would specifically accommodate clothing worn at the pools for religious reasons. Under the agreement, the city will also pay $20,000 to the Muslim academy that filed the suit in August, as well as nearly $4,300 to the families of seven children named as plaintiffs in the case.