You got this one backwards. It's another black coworker warning the author that "Steve" talks a lot of shit.
Yeah, everything else there is pretty awful, and Steve should have been fired for it.
I kind of wondered why he mentioned that he was going to to talk to HR, but then didn't. It seems like the appropriate response it to talk to Steve's manager, then HR, then take legal action if the first two were not fruitful.