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

The number of web accessibility lawsuits filed under the Americans with Disabilities Act (ADA) has grown year over year (more than 8,000 were filed in 2024 alone — a 7% increase from 2023). And so have the penalties for non-compliance. 

Under Title III of the ADA, businesses may face fines up to $75,000 for a first violation and up to $150,000 for subsequent violations. The hefty fines are just part of the penalties for non-compliance. Below, we’ll explore those additional penalties in more detail as well as provide tips for achieving compliance.

What is the ADA?

The ADA is a landmark civil rights law that prevents discrimination against people with disabilities. It requires organizations to make both their physical spaces and digital content — including websites and online services — accessible to everyone. The ADA applies to nearly all businesses open to the public, as well as state and local governments, nonprofits, and other organizations.

The ADA is organized into five sections (or titles), each of which has a separate entity responsible for enforcement:

• Title I prohibits discrimination against persons with disabilities in all aspects of employment. The U.S. Equal Employment Opportunity Commission (EEOC) enforces this title. 

• Title II prohibits discrimination in public services, programs, and activities. It applies to all state and local government entities, with the U.S. Department of Justice (DOJ) responsible for enforcement.

• Title III prohibits discrimination in places of public accommodation, including private entities and nonprofits that are open to the public. The DOJ is also responsible for Title III enforcement.

• Title IV applies to telecommunications companies and requires them to make telecommunications relay services (TRS) available to individuals with auditory disabilities (such as deafness or hard of hearing) and/or speech disabilities. The Federal Communications Commission (FCC) primarily enforces it.

• Title V contains miscellaneous provisions related to the ADA and its relationships with other laws. 

Each part of the ADA comes with real consequences — from costly fines to lawsuits that can escalate fast. Since anyone with a disability can take legal action for certain violations, organizations need to stay ahead by taking a proactive approach to accessibility.

Multiple stacks of money. Each bill has an accessibility icon in the center.

ADA Website Violation Fines, Explained

ADA website violation fines are not cheap. A first violation for ADA non-compliance can carry a maximum civil penalty of up to $75,000, and subsequent violations can reach a maximum of $150,000. 

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 Non-Compliance Costs

Federal fines aren’t the only consequences of failing to comply with the ADA. Legal fees, damage to brand reputation, and other costs can also add up quickly. 

Private ADA Lawsuits and Legal Action

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; however, in some states, the law allows for damages in certain circumstances.

For example:

• California: Under the Unruh Civil Rights Act, plaintiffs may recover $4,000 per violation. Any violation of the ADA is considered a violation of the Unruh Act.

• New York: Violations of the ADA may constitute violations of the New York Human Rights Law and the New York City Human Rights Law, potentially leading to additional claims. 

• Florida and Pennsylvania: Historically, these states have been considered more favorable environments for ADA plaintiffs, with a high volume of accessibility-related claims. 

Because plaintiffs can file lawsuits in states with more favorable laws — even if the business operates elsewhere — organizations nationwide face risk. New York currently leads in the U.S. in ADA website lawsuits, many involving companies based outside the state. 

Legal Fees

The cost of attorney fees and court filings can quickly accumulate in any lawsuit. That’s particularly true for ADA violations: One attorney conservatively estimates $2,000 to $5,000 just for lawyers' 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

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 implementing accessibility policies, removing barriers in physical or online settings, or hiring accessibility experts, with the potential for further lawsuits if the plan isn’t followed. 

Two high-profile examples of federal ADA settlements:

• In December 2021, the Justice Department executed a settlement agreement with Hy-Vee, Inc. for alleged violations of the ADA on the grocery chain’s vaccine website. 

• In November 2014, online grocery delivery service Peapod agreed to resolve alleged accessibility issues with its mobile app and website. 

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

Additionally, when a case is settled, the defendant usually agrees to pay the plaintiff’s legal fees. 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. Given the heightened social consciousness of today’s marketplace, businesses perceived as discriminatory face a significant competitive disadvantage. 

A stylized web page that shows a number of accessibility errors.

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. 

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

• Missing alt text: People with visual impairments may use screen readers that need alt text (also known as alternative text) to describe images. Adding alt text to every image ensures that these users can understand visual information.

• Low contrast: If text color is too similar to the background or other web elements, it can be difficult to read, especially for those with low vision or color blindness. Choose colors with sufficient color contrast ratios to enhance readability. A color contrast checker — like this one from AudioEye — can help you find the right balance.

• Keyboard navigation issues: Many people use a keyboard alone to browse the internet. If a website isn’t fully navigable with a keyboard, it’s an ADA violation. Luckily, keyboard accessibility issues can be resolved simply by fixing underlying issues in the site’s code and markup.

• Lack of captions or transcripts: Users with auditory disabilities, including those who are deaf or hard of hearing, may rely on captions or transcripts to understand multimedia content, such as videos or podcasts. Both are fairly easy to create when drafting videos and are useful for a wide range of users.

Most of these issues cost little to nothing to resolve and are much more expensive than ADA website violation fines or full-on lawsuits. Additionally, web accessibility has enormous benefits apart from lower legal risk: ADA-compliant websites attract a broader, more diverse audience (which can open up new revenue opportunities), increase SEO rankings, and provide a better user experience for all users, increasing customer loyalty and satisfaction.

Notable ADA Compliance Exemptions

The ADA includes a few limited exemptions, but most do not apply to website accessibility. In other words, if your organization has a public-facing website or digital services, ADA accessibility requirements almost always apply. 

Common ADA exemptions include:

• Undue hardship: If modifying would cause significant difficulty or expense relative to the organization’s size or resources, the ADA may not require it. However, this defense rarely applies to web accessibility, as most web fixes are low-cost compared to physical accommodations.

• Religious organizations: Churches, synagogues, and other religious entities are generally exempt from Title III, even when they operate public accommodations.

• Private clubs: Membership-based organizations that are truly private and not open to the general public are also exempt from Title III requirements.

• Small businesses: Companies with fewer than 15 employees may be exempt from some employment-related requirements under Title I, but they’re still required to make their websites and services accessible under Title III if they serve the public. 

The bottom line: If your organization services the public — online or offline — you’ll likely need to meet ADA accessibility requirements.

Stay Compliant, Avoid Fines, and Build More Accessible Content with AudioEye

The best way to avoid ADA website violation fines? It’s not through fear or half-fixes — it’s by committing to accessibility. When you take a proactive approach to accessibility and make your content accessible by design, you don’t just protect your organization from legal risk; you create a better experience for every user.

Accessibility is a long-term investment in usability, brand trust, and compliance — not just a one-time checklist. Regular testing, accessibility audits, and help from experts can ensure your site continues to meet ADA and WCAG standards, regardless of how much your content or technology changes. 

That’s where AudioEye comes in. Our Digital Accessibility Platform helps organizations maintain compliance, lower legal risk, and build digital experiences that work for everyone. 

• Three-pronged approach to accessibility: AudioEye expertly combines powerful automation with human-assisted AI technology to find and fix accessibility issues as well as lay the path for long-term, sustainable compliance.

• Comprehensive legal support: AudioEye provides 400% more protection than consulting or automation-only approaches, giving you peace of mind that your digital content is accessible and compliant.

• Real-world results: AudioEye has a proven track record of helping real businesses avoid costly litigation and resolve accessibility issues effectively. 

Ready to see how AudioEye can help you improve compliance and create a truly accessible online experience? Schedule a demo today.