The 7-year-old student had come to school on picture day with Jolly Rancher candies tied to the end of her braids, the Chicago Tribune reported Wednesday.
The lawsuit charges the teacher took pictures of the girl's hairdo and posted two of them on her Facebook page along with the comment, "And y'all thought I was joking!"
Several friends of the teacher posted comments mocking the child's hairstyle.
One wrote: "I laughed so hard that my contact popped out."
The girl's mother complained to the school principal and the teacher apologized.
Attorneys for the mother are asking for a jury trial but have not specified what monetary damages they are seeking.
In addition to the teacher, the Chicago Public Schools are named as a defendant in the suit.