The California Supreme Court revived a racial bias lawsuit filed by Twanda Bailey, a former employee of the San Francisco District Attorney’s Office. The court overturned a prior decision by the California Court of Appeal, ruling that a single instance of racial harassment by a coworker, specifically the use of a racial slur (the n-word), could be sufficient to create a hostile work environment under the California Fair Employment and Housing Act.

The court pointed out that it isn’t just the singular use of a racial slur, but based on the overall context and the severity of the harassment should be assessed rather than just focusing on the status of the person who made the comment. The court criticized the appellate court for concentrating too much on the fact that the comment came from a coworker rather than a supervisor. The Supreme Court’s decision permits Bailey’s case to be reconsidered, potentially opening the City of San Francisco to liability for how it handled the complaint and addressing possible retaliation claims.

This is the first time a court has established that a single use of a racial epithet by a coworker can be considered actionable harassment. For employers it highlights the importance of thorough investigations into harassment claims and the need for fair treatment of employees in all workplace situations, regardless to their title or position.