The Collaborative International Dictionary of English v.0.48:

Epaulet \Ep"au*let`\, Epaulette \Ep"au*lette`\, n. [F.
   ['e]paulette, dim. of ['e]paule shoulder, fr. L. spatula a
   broad piece (LL., shoulder), dim. of spatha abroad, flat
   instrument, fr. Gr. ?, also, a broad rib, shoulder blade. See
   Spade the instrument, and cf. Epaule, Spatula.] (Mil.)
   A shoulder ornament or badge worn by military and naval
   officers, differences of rank being marked by some peculiar
   form or device, as a star, eagle, etc.; a shoulder knot.
   [1913 Webster]

   Note: In the United States service the epaulet is reserved
         for full dress uniform. Its use was abolished in the
         British army in 1855. Epauleted

WordNet (r) 3.0 (2006):

epaulette
    n 1: adornment consisting of an ornamental cloth pad worn on the
         shoulder [syn: epaulet, epaulette]