Looks like what you're doing is a very clear cut textbook violation of the law.
>National Origin Discrimination & Work Situations
>The law forbids discrimination when it comes to any aspect of employment, including hiring, firing, pay, job assignments, promotions, layoff, training, fringe benefits, and any other term or condition of employment.
It's not as clear cut as you are trying to make it out. Perhaps he simply wasn't clear in his wording....