Lawsuits filed against small businesses accused of violating the Americans With Disabilities Act or ADA are growing in number.
According to web compliance provider Usable.net, more than 16,000 lawsuits accusing companies of digital non-compliance with ADA laws have been filed since 2020, most of which were against companies with less than $25,000 in revenue.
Some of these cases, initiated by so-called serial filers, can be called abuse of the system. For example, in Oregon, a man admitted that he was paid $600 a month to visit local businesses and sued them for violating the rights of the disabled. More than 20 lawsuits have been filed by a California woman seeking damages from small businesses that allegedly violated the ADA. And in Philadelphia a man reportedly sued more than 30 eating and drinking establishments across the state for failing to comply with various ADA requirements.
“Some law firms are notorious for getting problems for nothing,” Marc Levy of The 215 Guys, a website design company in Philadelphia, wrote in a blog post earlier this year. “In most industries, regulations would be enforced by inspection and maintenance, but the ADA is enforced by the courts.”
However, many activities are ethical, and small business owners need to know how to comply with the ADA.
ADA requirements for small businesses
Many times, small business owners mistakenly believe that the structures and practices they had in place before the ADA came into effect are allowed to continue because they are already in place of the law, said Sharon Caserta, an attorney at Morgan & Morgan in Philadelphia. “This is usually not the case.”
Caserta says the ADA applies to almost all small businesses, and compliance comes in different forms.
“It’s not just the structure of your business but also through the laws that make it possible for customers with disabilities to access the services of small business providers, like your website,” he said.
According to Joseph D. Lento of the Lento Law Group in Philadelphia, there are four main areas that small businesses should focus on in order to comply with the ADA, starting with physical availability. The law requires that businesses must have accommodations such as wheelchair ramps, elevators, and accessible restrooms and that they have removed construction barriers that impeded or obstructed access and movement.
“Ensuring that your small business is physically safe for customers and employees remains an important part of ADA compliance,” he said.
A lesser known aspect of the ADA is providing effective communication, which includes providing aids and services such as sign language interpreters or TTY (teletypewriter) devices.
Another recent part of the ADA is the Web Content Access Guidelines, which were updated earlier this year.
“Businesses, to comply with this plan, must ensure that their websites are visible, functional, understandable, and strong,” said Lento.
Finally, it is important for small business owners to be aware of the ADA’s employment provisions, which prohibit discrimination against people with disabilities in hiring, promotion, and termination.
“The general standard is that businesses must provide accommodations to able-bodied people with disabilities unless doing so would place an undue hardship on the business,” Lento said.
ADA tax incentives can help you comply
There are limited tax credits and deductions to help pay the costs of complying with the ADA.
For example, the Disabled Access Credit provides a non-refundable loan of up to $5,000 to small businesses (those with less than $1 million in revenue and no more than 30 full-time employees) for the purpose of providing access to people with disabilities.
The Architectural Barrier Removal Tax Deduction, up to $15,000 per year, encourages businesses of any type to remove structural and transportation barriers to the mobility of disabled and elderly people.
There is also an Employment Opportunity Tax, ranging from $1,200 to $9,600, for businesses that hire people from certain targeted groups, such as those with disabilities.
The government provides ADA guidelines and resources
The Department of Justice Civil Rights Division offers technical assistance and easy-to-read brochures, as well as a toll-free ADA information hotline. While the hotline does not provide legal advice, it does answer questions about ADA compliance.
Local ADA advice and training is often available through Pennsylvania’s Centers for Independent Living, Protection and Advocacy organizations and disability providers such as Deaf Service Centers, affiliate chapters of the National Federation of the Blind, and organizations serving disabled veterans.
Lento says compliance will not only create a better environment for customers and employees, but will also help the small business owner in the long run by avoiding the negative consequences of non-compliance.
Caserta agrees. “Don’t wait to learn about ADA violations in your business; lean into it, and learn how to achieve compliance,” he said. “Remember: People with disabilities are your customers and, importantly, they are members of your community.”
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