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The word definitely is completely idiomatic with regard to humans in French. Look up any dictionary definition. And there’s no law making it illegal in France. Besides, even if it had such a law, the French state doesn’t have a monopoly on the French language. It’s an official language in 29 countries.

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Well, try to use the world "race" for human in France at least yes (sorry I'm talking about what I know of, I don't know for other French speaking countries), and you will see the reactions (maybe not as outraged than if you used the N word in the US, but something like that).

As for the legal part, calling all people of a given origin "bad managers" is definitely illegal here in France (once again, speaking only about what I know of)

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