OLATHE, Kan. — The U.S. government sued Hobby Lobby, claiming the popular chain violated federal law when it refused to allow an Olathe employee to use her service dog.

Hobby Lobby is now facing a federal lawsuit for disability discrimination from the Equal Employment Opportunity Commission (EEOC) after it failed to settle with the former employee.

Hobby Lobby Stores Inc unlawfully fired a Kansas store clerk with post-traumatic stress disorder and other conditions after barring her from bringing a service dog to work, the U.S. Equal ...