SAN FRANCISCO -- Eight current and former warehouse workers are accusing their Bay Area employer of racial harassment and discrimination.

The workers claim they were targets of racist remarks and were punished when they complained. They say they were especially offended when a manager hung a noose in his office.

The employees say the hangman's noose dangling from the ceiling of a manager's office gave them the shudders.

"In this day and age we shouldn't have to go through stuff like this. I mean especially California, this is Bay Area," said workers Reggie Eaton.

The men said it's because of the noose and ongoing racial harassment and discrimination that they're suing the B.R. Funsten and Company Tom Duffy Company in San Francisco Superior Court.

The company sells flooring and has about twenty offices in California and Nevada. These current and former employees say they were harassed while working in Fairfield and Benicia.

"It was just very intimidating where it was basically like stay in your place," explained Fred Clay. "You get out of line, you'll be up out of here."

The worker who shot this picture and videotape of the rope noose is among those suing. He says the warehouse manager, Richard Buikema, hung it in his office.

"It was just a cold feeling when you walked in there and see a noose," remembered Sarron Beverly. "A real noose hanging up from his office. It's just stunning."

"Me and another working were putting away material and he basically came and asked me if I got done putting away the material," said Joshua Hemphil. "And I told him that it was complete and he said 'Good, now your head can stay out of it, out of my noose.'"

Angela Alioto, the plaintiff's attorney, says she was stunned to learn the company's human resources director allegedly told the workers the noose was quote, "just a joke."

"A hangman's noose is the number one sign of racial prejudice," said Alioto. "People were hung because of the color of their skin."

The lawsuit also claims managers often made overtly racist remarks. One plaintiff claims manager Nate Kowalski said to him, quote, "I don't want you to work for me because you are black" and often said, quote, "Black people do not finish. They do the job half-way."

KTVU called the Tom Duffy office and stopped by in person. Each time we were given the same response: no comment.

Alioto said the employees first tried to work within the system, by complaining. But she says that just led to more harassment and bad work evaluations.

"These gentlemen have waited eight months to file this lawsuit, to try to see if things would get better," explained Alioto. "Instead, three were terminated and the others are constantly ridiculed."

The plaintiffs say that's because they complained about racial discrimination. A total of four no longer work at the company. The other men are still employed there, but say they're nervous about being penalized at work for filing a lawsuit.