I get what yall are saying and understand and respect it but where could a person who is phobic of little people ( I do not know what the PC term is, sorry) work? I mean, wherever you go you are bound to see one at one point, but it really isn't that common of something you see daily. Either that or I just don't notice. I could your point more see if she worked for a specialist who specifically treats little people.
if you are phobic of anything, you shouldn't be expected to live in a box. The employee in question has bills and needs like all of us. Of course if you are scared of clowns you won't work at a circus, McDonalds isn't a little person haven though, it is not like that place or anyplace is filled with them all day like clowns in a circus.
According to this website: http://www.phobialist.com/
There doesn't seem to be a phobia of little people. I searched for: midgets, dwarves, little people, elves, gnomes, you name it.
There is a Microphobia, which is "fear of small things'.