Recently, in affirming a decision by the Massachusetts Commission Against Discrimination (“MCAD”), the Massachusetts Appeals Court held that a racial epithet can constitute discrimination in terms and conditions of employment. In Augis Corp. v. Massachusetts Commission Against Discrimination, an African-American employee alleged that a supervisor had directed a profane and offensive racial slur towards him. The employee was subsequently terminated for violating a work rule, and he filed a charge with the MCAD alleging that he had been treated differently and terminated due to his race. While the employee relied on the supervisor’s statement in support of his claim, he did not allege that he was subjected to harassment or a hostile work environment. After a hearing, the MCAD found that the employer lawfully terminated the employee and rejected the employee’s claim of disparate treatment. Nonetheless, the MCAD determined that the supervisor’s slur constituted “racial harassment” and produced an “abusive working environment.” It thus found the employer liable for discrimination under Chapter 151B. In addition, based only on the employee’s testimony that he was stunned, upset and hurt by the racial epithet, the MCAD awarded the employee $10,000 in emotional distress damages.