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ADA Compliance Fines: What They Cost & Who’s at Risk

Posted January 16, 2025

AudioEye

Posted January 16, 2025

Illustration of a bag of gold coins with an accessibility symbol on the outside of the bag, next to a gavel and stack of books.
Illustration of a bag of gold coins with an accessibility symbol on the outside of the bag, next to a gavel and stack of books.

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Treat ADA compliance as optional or unnecessary, and you might face hefty fines or penalties down the road. Or, you could follow these paths to resolution.

The Americans with Disabilities Act (ADA) is a landmark civil rights law with a vast scope. It applies to virtually every employer in the United States, along with state agencies, nonprofits, and other organizations.

The goal of the ADA is to prevent discrimination against people with disabilities. To that end, it includes strong enforcement mechanisms, such as fines and lawsuits.

Federal law allows for fines of up to $150,000 for violations of the ADA. Businesses may also be subject to lawsuits, and the secondary costs of noncompliance—such as a damaged brand reputation—can have a lasting impact.

The number of web accessibility lawsuits filed under the ADA has grown year over year, and many businesses begin their digital accessibility initiatives out of compliance concerns. However, there are other reasons to adopt an accessible mindset: Accessible products (including websites) work better for a broader range of users.

In this article, we’ll review the financial penalties for non-compliance with the ADA. We’ll also focus on the potential consequences of web accessibility issues and provide tips for achieving compliance.

ADA Compliance Fines Explained

The ADA is organized into five sections (or titles). ADA enforcement may be handled by different federal agencies, depending on which title is violated: 

  • Title I prohibits discrimination against persons with disabilities in all aspects of employment. The U.S. Equal Employment Opportunity Commission (EEOC) enforces it.
  • Title II prohibits discrimination in public services, programs, and activities. It applies to all state and local government entities. The Department of Justice (DOJ) enforces it. Learn why every business should care about ADA Title II.
  • Title III prohibits discrimination in places of public accommodation, including private entities and nonprofits that are open to the public. The DOJ enforces it.
  • Title IV applies to telecommunications companies. The Federal Communications Commission (FCC) primarily enforces it.
  • Title V contains miscellaneous provisions related to the ADA and its relationships with other laws. 

Additionally, any person with a disability can file a lawsuit for certain ADA violations. Individual plaintiffs file most web accessibility lawsuits, not the Department of Justice.

Lawsuits Initiated by the Government

Federal enforcement typically targets significant ADA violations that impact many consumers, often focusing on repeat offenders. After an investigation and a lengthy court case, penalties may include fines and court-ordered accessibility fixes.

ADA Violation Fines

A first violation for ADA non-compliance can carry a maximum civil penalty of $75,000, and subsequent violations can result in a maximum civil penalty of $150,000. Those amounts were last adjusted for inflation in 2014, and they apply to any violations that occurred after April 28th of that year. 


Note that those are the maximum fines. In actual federal cases, the penalties levied can vary depending on the severity of the violation, the business’s history of compliance, good faith efforts taken to address the violation, and other factors.

Additional Costs

Federal fines aren’t the only potential consequence of noncompliance. Fighting a federal lawsuit can be extraordinarily expensive, so in most cases, businesses choose to settle with the DOJ.

Settlements often require defendants to adopt a plan to fix known issues, such as building accessibility policies or hiring experts, with the potential for further lawsuits if the plan isn't followed.

Two high-profile examples of federal ADA settlements: 

In both cases, the defendants agreed to make their digital content conform with the Web Content Accessibility Guidelines (WCAG), the international standards for web accessibility.

Private ADA Lawsuits and Legal Actions

Under the ADA, any individual with a disability can sue businesses that discriminate (intentionally or unintentionally). The ADA does not enable litigants to sue for monetary damages — but in some states, the law allows for damages in certain circumstances.

For example:

Businesses can face lawsuits in states with more favorable laws for ADA plaintiffs, regardless of where they operate. New York leads the U.S. in ADA website lawsuits, with many defendants based outside the Empire State.

Regardless of where they’re filed, ADA lawsuits are expensive for businesses:

Legal Fees

The costs of attorney fees and court filings can quickly accumulate in any lawsuit. That’s particularly true for ADA violations: One attorney conservatively estimates $2000 to $5500 for lawyer’s fees alone.

Even if a business successfully defends against a lawsuit or reaches a reasonable settlement, the legal fees associated with the process can be enormous. Successful defendants can recover their legal expenses in some states, but that’s not always the case.

Settlement and Damages

When a case is settled, the defendant usually agrees to pay the plaintiff's legal fees. They will also need to make the necessary changes to achieve ADA compliance. In some cases, businesses may also agree to compensate the plaintiff for damages, which can easily add thousands of dollars to the total bill.

Brand Reputation

Negative publicity surrounding accessibility issues can alienate customers and create the perception that the business is not inclusive or welcoming to people with disabilities.

In the U.S. alone, consumers with disabilities control about $21 billion in annual discretionary spending. In today's socially conscious marketplace, consumers seek out businesses that demonstrate ethical, inclusive practices. Businesses that are perceived as discriminatory have a serious competitive disadvantage.

Common ADA Violations and Fixes

Here’s the good news: While ADA complaints are expensive, most issues can be resolved at minimal expense. For physical storefronts, businesses may need to simply replace signage, provide designated areas for wheelchair users, or add accessible fixtures to restrooms.

Web accessibility violations are a growing cause for concern, but many of the most common issues are easy to address:

  • Missing Image Descriptions: People with visual impairments may use screen readers that need alternative text (alt text) to describe images. Adding alternative text to every image ensures that these users can understand visual information.
  • Low Contrast:  If the text color is too similar to the background, it can be difficult to read, especially for those with low vision. You can choose colors with appropriate contrast levels by using AudioEye’s Color Contrast Checker or another contrast tool.
  • Keyboard Navigation Issues: Many people use a keyboard alone to browse the internet. If a website isn’t fully navigable with a keyboard, it isn’t accessible. Keyboard accessibility issues can be resolved by fixing the underlying issues in the site’s code and markup. 
  • Lack of Captions or Transcripts: Users with sensory disabilities may need different types of text alternatives to understand multimedia. Captions and transcripts are fairly easy to create when drafting videos, and they’re useful for a wide range of users. 

This isn’t a complete list of potential ADA violations. The Justice Department recommends testing content against the Level AA standards of the latest version of WCAG (currently, WCAG 2.2). Learn more about ADA compliance guidelines for websites.

Most of these issues cost little to nothing to resolve and are much less expensive than a lawsuit. Moreover, web accessibility has enormous benefits apart from ADA code compliance: ADA-compliant websites attract a broader, more diverse audience and provide a better experience for all users.

Notable ADA Compliance Exemptions

The ADA outlines several potential exemptions for compliance. However, those exemptions aren’t typically applicable to the ADA requirements for website accessibility.

Arguably, the most well-known exemption category is for undue hardships: If a modification or change would result in “significant difficulty or expense,” it’s not required.

Other ADA compliance exemptions:

  • Religious organizations are exempt from Title III requirements, even if they operate public accommodations.
  • Private clubs are exempt from Title III. To qualify as “private,” a club must have selective membership criteria and cannot be open to the public.
  • Small businesses with fewer than 15 employees may be exempt from some of the employment requirements under Title I, but not from the public accommodations requirements in Title III. 

The bottom line: If your organization is open to the public, you probably need to plan for ADA compliance. To learn more about potential exemptions, read: Who is Exempt from ADA Compliance?

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