Three years ago, when I first started teaching, I was the only African-American teacher in the entire school. I would speak in the morning, and in some intenses, had blank stares as I walked by. (Yes, racism in America is REAL!) I became cool with the grade level closest to my room. In one setting, one of the teachers repeated something he saw on the internet that referenced the "n word" in a song. I was cool with the reference the first time he said it, but the second and third times just took it too far. I did not say anything to administration, but would that have been the best solution?
I would let them know it made me uncomfortable and avoid escalating it until given a fair chance to correct it.
You have to let someone know when you are uncomfortable. Great response!