Tichaona Brown and Tabrese Wright, who sued this week in New York State Supreme Court in the Bronx, said their boss talked about her physical fear of black people, humiliated them by making them repeat words she believes blacks pronounce incorrectly and mocked the "Black Lives Matter" movement.
Judith Slater, the executive involved, asked Wright, a mother of three, whether all of her children had the same father, the lawsuit alleges.
The allegations of racial insensitivity come on the same week that Fox's most popular personality, Bill O'Reilly, apologised for an on-air comment that he couldn't concentrate on a speech by California Rep Maxine Waters, who is black, because he was distracted by her "James Brown wig."
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Brown and Wright's lawsuit alleges that Fox "intentionally turned a blind eye" to the climate of racial hostility until it was clear that it couldn't keep the matter in-house. The lawsuit said Slater was fired "because Fox knew this would become a public matter and wanted to salvage its reputation." News reports of Slater's firing began circulating late last week.
Fox said it takes these matters very seriously and that it took action against Slater before the lawsuit and before Wright had complained through her lawyer.
The lawsuit also detailed complaints about the racial atmosphere at Fox by four other black employees who have since left the network.
In the lawsuit, the women said Slater had also made derogatory remarks about people of Chinese, Indian and Mexican descent.
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