Todays workplace can sometimes be a dangerous minefield, both for the employee and for the manager. You did the right thing in going directly to your boss and giving her a chance to fix the issue. I would also recommend going directly to HR. Company's in the US are in a constant state of fear regarding law suits and would likely respond to this particular issue in a rather strong fashion.
Of course, if you can find another job easily, sometimes discretion is the better part of valour.
"A veteran, whether active duty, retired, national guard or reserve, is someone who, at one point in his life, wrote a blank check made payable to "The United States of America", for an amount of "up to and including my life." That is honor, and there are way too many people in this country who no longer understand it." anon
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