One of DH's aunts called Brazil nuts this ridiculous term the first time I met her (almost 20 years ago). This was followed with a big belly laugh and a "I guess I shouldn't say that in front of the new girl!" (or something similar). I just stared at her. I had tried so hard to impress this boor up until that moment, as DH had described her as his most scary aunt, and the one whose opinion could make or break me with the family. Well, guess what? 20 years later, I'm a happy and functioning member of DH's family (although distance does make the heart grow fonder, LOL), and I barely have contact with this "scary" aunt. She's a bully, as are most people who say things to shock and offend. Shortly after this and an attempt by "Scary" aunt's DIL to make me look stupid in front of DH's parents, DH admitted that he hated spending time with these family members because of their behavior, and we've kept things distant (and coldly cordial) for nearly 20 years.
In a work situation, you have more recourse than in a family situation, certainly document and report! People like this are taking up good jobs that someone more deserving could have. I'm flabbergasted that someone would be so rash and idiotic in this economy!