In any "corporate" work place you'd get fired in a heartbeat if you used "gay" as a generic derogatory term.


as for the OP.. choices are

1. ignore it
2. joke along with them
3. tell them to STFU and GBTW (either nicely, very aggressively.. your choice..)
4. complain to management
5. talk to a lawyer or some other 3rd party
6. quit

i'd pick 1-3.. 2 probably is the least stressful.

if you show it obviously bothers you, they will just keep doing it because your reaction is the fun part. unless you go hardcore on them.

the ass pinching is definitely over the line though.. if he does it again an easy response would be something like "damn bro you can't keep your hands off my ass can you? "