Why Every Small Business Needs to Embrace ADA Compliance?

Running a small business takes hard work. You focus on serving customers and growing. But, there is one area you cannot ignore: ADA compliance. ADA stands for the Americans with Disabilities Act.
This federal law ensures people with disabilities have the same rights and opportunities as everyone else. It affects how businesses operate, impacting physical spaces and online services. For small businesses today, ADA compliance isn’t just optional; it’s essential for countless reasons.
While some small business owners ignore it or think they’re exempt, the act protects your business from lawsuits. Moreover, it opens your doors to over 70 million American adults who live with a disability. That’s a large customer base you don’t want to miss. This blog post breaks down why ADA compliance matters now more than ever.
The Rising Tide of ADA Lawsuits Against Small Businesses
The world is evolving rapidly while focusing on accessibility. More people expect businesses, including buildings and websites, to be accessible. Because of this, ADA-related legal action is rising, and small businesses are often targets. Many small business owners believe they shouldn’t be worried. However, it’s risky, as even the tiniest issues can cause big problems.
For instance, Seyfarth ADA Title III News & Insights discloses that in 2024, nearly 9,000 ADA Title III suits were submitted to federal authorities. The figure represents a 7% rise from 2023’s 8,227. Most suits were filed in California (3,250), followed by New York (2,220) and Florida (1,627). Small businesses are most prone to these lawsuits, highlighting the severe cost of non-compliance.
Likewise, according to UsableNet’s 2024 report, at least 4,000 ADA digital accessibility lawsuits were filed. Among these, 60% were filed in federal courts, while the rest were filed in New York and California state courts. The study also reveals that nearly 40% of lawsuits involved companies that had already been sued.
The Real Costs of Not Complying
Ignoring ADA rules can be very costly. Legal fees add up quickly. Defending against a lawsuit is expensive. It can cost much more than tackling the problem. Settlements or judgments can be huge sums. These amounts can severely hurt a small business. Look at a real example.
A Good Times Restaurants, Inc.-owned restaurant in Murfreesboro, Tennessee, agreed to pay $352,000 to settle claims it violated the ADA. Allegedly, the restaurant failed to provide accessible seating to a youth wheelchair basketball team and their parents, stating they were a fire hazard. The company agreed to pay nearly $35,000 for eight families and a non-criminal fine of $80,000.
Moreover, the Department of Justice reveals that the settlement mandates the restaurant to roll out new ADA compliance guidelines. These policies include new restaurant guidelines and ADA compliance lessons for its staff members. This case highlights a harsh reality: non-compliance can lead to major financial and legal trouble.
To avoid or overcome such significant legal challenges, local expert guidance is essential. If you operate in that locality, consulting attorneys in Murfreesboro, TN, can provide guidance on avoiding or resolving such disputes. However, facing a suit does not always mean going to trial.
Rather than heading straight to court, you can resolve the disputes through mediation. Hudson, Reed & Christiansen, PLLC, reveals mediation is ideal because it helps settle the dispute privately while requiring a portion of the trial cost.
Lesser-Known ADA Requirements
The ADA contains many rules that small business owners often miss. For example, Business News Daily mentions that service animal rules go beyond allowing dogs in your store. You can’t ask about the individual’s disability, but you can ask for documentation and tasks the service animal performs.
Moreover, it’s up to each business to permit entry to service or emotional support animals, as the ADA doesn’t recognize them as service animals. Staff training also matters more than you think. Businesses with 15+ employees must train staff to assist customers with disabilities. This includes everything from communication techniques to emergency procedures.
Likewise, retailers face unique rules, too. Clothing stores must provide accessible fitting rooms, while grocery stores need checkout counters under 36 inches high. AccessibilityChecker specifies that accessible parking spaces must be at least 96 inches wide, while access aisles should be at least 60 inches wide. However, these specific measurements often trip up business owners.
Website Accessibility Essentials
Your website must be ADA-compliant, too. Courts now view websites as “places of public accommodation” under the ADA. The Department of Justice sees WCAG (Web Content Accessibility Guidelines) as the basis for ADA website access. WCAG 2.0 Level AA is often the baseline. However, aiming for WCAG 2.1 AA or even 2.2 is smarter.
WCAG 2.1 helps users on mobile devices. WCAG 2.2 adds rules for various disabilities. Following these guidelines helps reduce your legal risks. Even though the DOJ has not officially adopted WCAG as the rule, courts, and experts rely on it. It shows you care about access. Key digital requirements include:
- Text alternatives for images
- Captions for videos
- Keyboard navigation options
- Proper color contrast
WCAG has higher levels beyond AA. Level AAA is the highest standard for accessibility. Achieving it means meeting the strictest rules. It provides the most complete access possible and covers distinctive user needs. Reaching this level is difficult for most sites, as it goes beyond typical compliance goals.
Cost-Effective Compliance Tips for Small Businesses
You don’t need to break the bank to meet ADA requirements. Start with a phased approach. Fix the most critical issues first, like entrance accessibility and restroom accommodations. For your website, free tools like WAVE and Axe can identify basic accessibility issues. Many content management systems also offer accessibility plugins.
The IRS provides tax incentives for ADA improvements. The Disabled Access Credit offers up to $5,000 in tax credits annually for small businesses for accessibility modifications. Meanwhile, the Barrier Removal Tax Deduction allows up to $15,000 in deductions for removing barriers. However, not all businesses must comply with every ADA requirement.
“Undue hardship” provisions exist when compliance would cause significant difficulty or expense. Buildings constructed before 1993 may have some exemptions. But you still need to remove obstacles if “readily achievable” or if it’s easy or inexpensive. Similarly, if you can’t make your main entrance accessible, an alternative entrance might be acceptable. Just make sure it’s visibly marked and open during business hours.
People Also Ask
Q1. How much does ADA compliance usually cost for a small business?
Costs vary greatly for small businesses. Simple fixes like adding ramp grips or clear signage might be inexpensive. Major renovations or complex website overhauls cost more. Focus on what’s “readily achievable” first. Remember, tax credits can help lower your overall expenses. An initial audit guides smart budgeting.
Q2. What does ‘readily achievable’ mean for ADA compliance?
‘Readily achievable’ means easily attainable and can be executed without difficulty or spending. This standard considers your business’s size and financial health. It requires removing barriers where practical for you. It’s a flexible test based on your specific circumstances, not a one-size-fits-all rule.
Q3. Are state accessibility laws different from federal ADA rules?
Yes, states can have their accessibility laws. These state laws often mirror or provide stronger protections than the federal ADA. States like California and New York are known for having additional requirements or more frequent enforcement. Always check your specific state’s regulations in addition to the federal law.
ADA compliance isn’t just about avoiding lawsuits. It’s about including everyone in your business. The disabled community represents over a trillion in disposable income, and making your business accessible helps you tap into this market.
Start with an accessibility audit of your physical location and website. Create a plan to address issues over time. Train your staff on disability etiquette and accessibility features. By embracing ADA compliance, you protect your business and welcome more customers. It’s not just the right legal choice; it’s the right business choice too.