Although I hear that word, and many others spoken from time to time at school (highschool), I do feel fairly lucky. I have a quick and decisive solution if I hear them, and can put a face to the mouth......it is board policy that harrassment in any from is grounds for school discipline. If a student calls another 'gay' for example, that could results in 3 days suspension. We have a "no put down" policy system wide.
Now, having said that, if/when I do hear it (or any other offencive term) in my room, usually in reference to art rather than a person, I take the opportunity to remind the student of appropriate behaviour in school and give them their one and only warning. There have been instances however, when the words were said against an individual, and no warnings are given, it's to the office they go. All students know the rules, and the consequences. It makes no difference if it is in my class room, or the halls, or the cafeteria.
Well, March Break is over, and it's back to school I go tomorrow.