Actually, it is illegal to create a hostile work environment under the California labor law (and many other US states and developed countries). Race and gender are protected statuses.
Companies are expected to have anti-harassment or anti-discrimination policies.
Companies are expected to have anti-harassment or anti-discrimination policies.
References:
http://www.toplawfirm.com/HostileWorkEnvironment.html
http://www.harriskaufman.com/Articles/Harassment-Advice-What...