ADA Compliance: A Guide to Costs & Risks for Employers

Picture this: you receive a complaint alleging a violation of the Americans with Disabilities Act (ADA).

Questions start racing through your mind: What did we miss? Is our website not accessible? Was an interview question out of line? Are redressal mechanisms not robust enough? And more urgently, what would it cost?

Violations of the ADA could prove costly. You could face significant legal penalties and a tarnished brand image. Worse, non-compliance could demoralize your workforce and diminish trust in you as an empathetic employer. 

Understanding the risks is the first step toward protecting your business. Let’s examine ADA compliance fines, who is most at risk, and how you can proactively create a compliant workplace.

Understanding the Two Types of ADA Violations

The ADA is divided into sections, which are referred to as ‘Titles.’ For most small businesses, the two most important are Title I and Title III.

• Title I (Employment): This applies to businesses with 15 or more employees. It prohibits discrimination against qualified individuals with disabilities in all aspects of employment, from hiring and job applications to promotions and benefits. It also requires employers to provide ‘reasonable accommodations’ for employees with disabilities. These accommodations relate to adjusting a job, the work environment, or the hiring process.

• Title III (Public Accommodations): This title affects nearly any business that serves the public, regardless of its size. It requires that you provide equal access to your goods and services. This has traditionally meant physical accessibility (such as your storefront, office, or restaurant), but courts have increasingly applied it to digital spaces, making website accessibility a significant area of risk.

What are the Penalties for ADA Violations?

The financial consequences of a violation depend on the Title in question. Penalties are not minor and aim to enforce serious compliance.

The Department of Justice (DOJ) can issue civil penalties for Title III violations (public accommodations). The fines for ADA violations can be staggering:

• Up to $92,383 for a first violation

• Up to $184,767 for a subsequent violation

For Title I employment violations, the Equal Employment Opportunity Commission (EEOC) enforces the rules. Employer penalties for ADA violations here don't come in the form of a simple fine. Instead, they can include:

• Compensatory and Punitive Damages: These are paid to the affected employee or applicant. The damages pay victims for out-of-pocket expenses caused by the discrimination and compensate them for any emotional distress they suffer. The amount is capped based on the size of your business, ranging from $50,000 for smaller employers to $300,000 for large corporations.

• Back Pay and Legal Fees: You could be required to pay the employee’s attorney fees and any wages they lost as a result of the discriminatory act.

These figures don't include the cost of your own legal defense. These can run into thousands of dollars. Additionally, your brand image suffers, and your employees become demotivated. 

Who's at Risk? Common Triggers for ADA Violations

An unintentional oversight is still a violation. Here are some of the most common missteps that can lead to ADA penalties:

1. Inaccessible websites: This is among the most common grounds for lawsuits. A website that screen readers or other assistive technologies cannot navigate can be in violation.

2. Refusing reasonable accommodation: Failing to consider modifications to the recruitment process or employment conditions can be construed as a violation. Reasonable accommodations could include purchasing a special chair or installing toilets for individuals with disabilities. 

3. Inaccessible physical spaces: A lack of accessible parking, narrow doorways, or inaccessible restrooms can trigger a Title III complaint.

4. Discriminatory job descriptions: Using exclusive language that screens out people with disabilities (e.g., requiring a driver's license for a job that involves no driving) can invite litigation.

5. Victimization: Harassing persons with disabilities for speaking out against discrimination can invite legal action. Companies could threaten such employees with firing or penalize them with a demotion. 

Simplify ADA Compliance with a Reliable Partner 

The complexities of ADA can feel overwhelming, especially if you’re a small business without an HR team. Even if you have HR personnel in-house, the evolving nature of laws and jurisprudence makes it tedious to keep up with the changes. 

At DianaHR, we believe in empowering entrepreneurs by taking complex HR tasks off their plates so they can focus on growth. Our expert HR professionals can help you understand and implement obligations under the ADA, review policies, and establish compliant practices from employee onboarding to offboarding. The experts can audit your procedures and develop a reasonable accommodation policy. 

With us, you can focus on your business and people, rather than worrying about fines. 

Get in touch with DianaHR today. 

FAQs

1. What are the violations under the ADA for small businesses? 

Violations of the Americans with Disabilities Act (ADA) for small businesses can be categorized into two main areas. Under Title I, employment discrimination encompasses violations, including unfair practices in hiring and promotions. It also covers the provision of a reasonable accommodation. Title III covers the failure to provide the public with equal access to your goods and services, which applies not only to physical spaces, such as offices, but also to digital spaces, including websites.

2. What are the common triggers for violations under the ADA?

Common triggers for ADA violations can be intentional or unintentional. They can include refusing an employee's request for a reasonable accommodation without engaging in a good-faith ‘interactive process.’ Asking prohibited questions about a candidate's health or disability during an interview could also trigger a complaint. Furthermore, an inaccessible company website, the use of discriminatory language in job descriptions, and inflexible leave policies can be grounds for complaints. 

3. How can external experts help businesses stay compliant with the ADA?

External HR experts can support small businesses by providing the specialized knowledge needed to comply with the ADA. They can conduct audits of employment practices, website accessibility, and physical spaces to ensure compliance with relevant regulations. They also assist in creating legally sound policies and setting up a formal, reasonable accommodation process. Experts also keep tabs on changing laws to update your policies accordingly.