If i call my co worker a faq OUTSIDE OF THE WORK PLACE. not in the office. i shouldnt get fined. amare called dude a name OUTSIDE of work. it wasnt during a game. it was in private outside of work. id fight this appeal.
I know most of us don't read the contracts when we sign those employment papers, but trust me, companies cover their ass and you would lose the appeal.
and If your co-worker felt he/she was insulted, Instead of fined, you would be fired. The situation you just presented is the reason why some companies prohibit leads/supervisors from hanging out with their employees during off-hours.
Also as a public figure, you are never *OFF* work.