What part of "The words/phrase itself isn't banned" is hard to comprehend? Using the words in a threatening or discriminatory manner is what is banned, not the word itself. News flash, all over the country it's illegal to say certain words/phrases in certain settings or in certain ways. Just like you can't scream bomb at an airport. I don't see you fighting the fascist government over that.
Furthermore, this is law is intended to fight against slumlords and sleezy business owners who taken advantage of immigrants whether they are legal or illegal. I am not necessarily in total agreement with it, but stop with the banning words mantra. It's totally misleading and sensationalism.