Notes

Age may be just a number, but for some younger employees, it often does not feel that way. According to the Bureau of Labor Statistics, young people between the ages of 20 and 24 have the highest unemployment rate for adults in the U.S. as of April 2012. The rate is 13.2 percent. For people between the ages of 25 and 34, the rate is 8.1 percent. Discrimination against young employees in small businesses is due to several factors.

Perceptions of younger employees can work against them. According to a 2012 study conducted by the UK Department of Work and Pensions, co-workers and employers tended to view older people as more friendly and more competent than workers in their 20's. Younger workers are also often seen as more demanding by some employers, which works against them. Some younger workers expect flexible schedules and time off, which may be difficult for small businesses to give. Another reason for discrimination against younger worker may be their apparent lack of responsibility. According to Dana Mattoli of the "Wall Street Journal," younger workers who do not have children or family obligations are easier for businesses to lay off compared to employees who need to support a family.

A "Last In, First Out" policy protects businesses from age discrimination lawsuits, while at the same time discriminating against younger workers. It does not matter if a young worker is more valuable to her company than an older worker who has more seniority. The younger worker is more likely to be laid off if a "Last In, First Out" policy is in place, simply because she has not been with the company for as long. A small business that wants to hire and keep the best people should consider keeping or letting go of employees based on their skills and loyalty, not the length of their employment.