HR Management & Compliance

California Outlaws ‘Demand Letters’ in Attempt to Curb Predatory ADA Suits

Letters demanding that businesses fix accessibility violations or settle with the sender are now prohibited in California thanks to a law that took effect last week.

The bill, SB 1186, amended state law “by prohibiting ‘demand for money’ letters, where attorneys target businesses with alleged minor access violations and demand a quick monetary settlement in lieu of a more expensive lawsuit or fixing the problem to improve access,” California Gov. Jerry Brown’s (D) office explained.

The changes also: (1) prevent attorneys from making multiple claims for the same alleged violation; and (2) reduce damages for businesses that fix unintentional violations quickly.

”The whole point of our state and federal disability access laws is to remove barriers for the disabled, giving them full and equal access to businesses like everyone else. Up until now, unfortunately, it was often cheaper and quicker for business owners to settle out of court than to remove those obstacles,” said Sen. Darrell Steinberg (D-Sacramento), one of the bill’s co-authors, in a statement. “SB 1186 will instead provide more incentives to fix the violations and enhance accessibility.”

Now, letters to businesses should only point out alleged violation and advise owners and tenants that they may be liable for damages for a violation of accessibility requirements, Brown’s office explained.

“Small business owners have finally scored a victory against the onslaught of drive-by Americans with Disabilities Act lawsuits,” the National Federation of Independent Business said in a press release.

The law “ends the practice by attorneys of sending ‘shakedown’ letters to unsuspecting businesses,” said John Kabateck, NFIB California’s executive director. “All it takes is one lawsuit to put a small business out of business permanently.”

For additional information about disability discrimination, see Thompson’s employment law library, including the ADA Compliance Guide.

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