Dad takes backing away as backing down, and puffs up like a banty rooster. He moves quickly forward, getting close enough to speak in a low voice and be heard, and says "Swing at me <your guess is no doubt accurate> and lose your job." He looks at you, who are standing close enough to hear him clearly, with a grin that says that he fully expects you, since you are on the "right side" of a skin color equation, to have his back in whatever happens when the cops get there.
Soooooo...what is the appropriate action here?