ADA Website Compliance Laws and Penalties: What Every Business Should Know

Website accessibility is governed by two primary laws: the Americans with Disabilities Act (ADA) and the Rehabilitation Act. These laws apply to nearly every business, school, and public organization in the United States. Even if your business doesn’t receive federal funding (which triggers the Rehabilitation Act), you’re still obligated to meet ADA website compliance standards.

Learn more about how the ADA applies to websites.

What Happens If You Don’t Comply with the Law?

Failing to meet accessibility requirements puts your organization at serious legal risk. The U.S. Department of Education’s Office for Civil Rights (OCR) is increasing the number of investigations into school district websites to ensure compliance with Title II of the ADA and Section 504 of the Rehabilitation Act of 1973. These laws are designed to prevent discrimination against individuals with disabilities.

Explore how Section 504 and 508 impact school and government websites.

OCR investigations are rising. As many as 350 investigations have been conducted, and many resulted in legal demand letters and lawsuits. In most cases, these have ended in successful settlements.

Case Study: Seattle Public Schools

In 2014, blind parent Noel Nightingale and the National Federation of the Blind sued Seattle Public Schools. The claim: the district’s website was incompatible with screen readers. Despite reporting the issue in 2012, no corrective action was taken, leading to a lawsuit and eventual settlement.

Seattle’s school board estimated costs between $665,000–$815,000 for website remediation, legal fees, hiring an accessibility coordinator, and staff training. Source.

This became a landmark agreement. NFB President Mark Riccobono stated it should “serve as a model for the nation” and warned other districts that full access for blind students, staff, and parents must be prioritized.

Other High-Profile ADA Website Lawsuits

In 2016, multiple lawsuits followed — many supported by the Department of Justice and NFB. One notable case involved Ms. Dudley, a blind student who sued Miami University in Ohio. The university settled, agreeing to pay $108,000 for educational expenses, $102,000 for pain and suffering, and up to $50,000 in student loan repayments. Source.

Read more ADA website lawsuit examples and outcomes.

Understanding ADA Titles I, II, and III

  • Title I: Applies to employers with 15 or more employees. Requires reasonable accommodations and accessible digital communication for applicants and staff.
  • Title II: Applies to public entities like schools, libraries, and state agencies. Websites and digital services must be fully accessible.
  • Title III: Covers businesses and nonprofits that provide public accommodations (e.g., retail stores, restaurants, medical offices). Their websites are considered an extension of their physical space.

Explore the full breakdown of Title III compliance here.

Common Website Accessibility Violations

Many businesses unknowingly violate ADA standards simply due to outdated or improperly designed websites. Common issues include:

  • Images without alt text
  • Low contrast text/background colors
  • No keyboard navigation support
  • Missing form labels and instructions
  • Videos without captions
  • Non-compliant PDFs or downloadable content

Learn when and how to use alt text for accessibility.

WCAG 2.0 and Section 508 Non-Compliance Penalties

  • Fines of up to $55,000 for the first violation and $110,000 for each subsequent violation
  • Revocation of federal funds for public entities and grant recipients
  • Costly settlements and legal fees, especially when lawsuits are class action or DOJ-supported

Understand the role of WCAG in digital accessibility compliance.

Target, H&R Block, and Corporate Risk

Target Corporation was among the first major brands to set precedent in 2008. The company settled a class-action lawsuit for $6 million after being accused of having an inaccessible website. They also paid approximately $3.7 million in legal fees.

In 2014, H&R Block subsidiaries agreed to pay $45,000 to two plaintiffs and a $55,000 civil penalty.

How to Conduct an Accessibility Audit

A proper ADA website audit should evaluate your site against the WCAG 2.1 guidelines. Key steps include:

  • Running automated accessibility scans (e.g., WAVE, axe, Lighthouse)
  • Conducting manual checks using keyboard navigation and screen readers
  • Reviewing alt text, forms, links, buttons, and contrast ratios
  • Testing on mobile devices and across browsers

Step-by-step guide to accessibility testing.

FAQ: ADA Website Compliance

  • Do I need to be compliant if I run a small business? Yes. The ADA applies regardless of company size, especially for businesses that serve the public.
  • Does ADA compliance include mobile apps? Yes. Mobile platforms must also follow accessibility best practices.
  • Can I just install an accessibility overlay? No. Overlays are not a substitute for full compliance and are often not enough to avoid lawsuits.

How to Protect Your Website

Penalties for non-compliance are not limited to corporations. Schools, service providers, and local businesses are all at risk. If your website hasn’t been reviewed for ADA and WCAG compliance, now is the time to act.

Learn what to do if you’re hit with an ADA website lawsuit.

Get Ahead of Legal Risk

Don’t wait until you receive a complaint or demand letter. At GetADAAccessible.com, we help businesses and institutions meet ADA and Section 504/508 standards through comprehensive audits, remediation, and training.

Contact us today to schedule a compliance review — before legal trouble arrives at your door.

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