In California, the hospitality industry is only just beginning to recover from the devastating effects of the pandemic. But instead of supporting small businesses on the road to recovery, lawmakers seem content to make the journey even harder.
One of the most pressing threats we face comes not from economic uncertainty or labor shortages, but from a flood of predatory lawsuits exploiting the Americans with Disabilities Act.
While the ADA is a well-intentioned law designed to ensure accessibility for people with disabilities, trial lawyers have turned it into a weapon to extract massive settlements from hardworking business owners. These lawsuits often target minor or technical violations — such as the height of a counter being off by an inch or a sign being slightly misplaced — rather than genuine barriers to accessibility.
For many small business owners, especially those from minority communities such as myself, these lawsuits pose an existential threat. Hotel owners, restaurant operators, and other hospitality businesses are easy targets for legal firms that churn out ADA claims in bulk.
The cost of defending against these lawsuits is astronomical, and many small businesses are forced to settle rather than face protracted legal battles. The result? Resources that could be used to improve real accessibility are instead siphoned away to pay legal fees and settlements.
This is not what the ADA was meant to do. It was intended to break down barriers and create a more inclusive society for people with disabilities. But when the law is twisted into a cash cow for trial lawyers, it fails both businesses and the disabled community. Instead of fostering authentic accessibility, these exploitative lawsuits create an environment of fear and financial hardship.
You know that is the case when the same attorney and same plaintiff file thousands of ADA lawsuits without ever visiting or staying at the property. They simply look at the maps and send threats of litigation as they search for a quick settlement.
This has gotten even easier for the trial attorneys to do, as more recently they have begun to pursue businesses with websites on the grounds that they must be accessible for those who are visually impaired. This new front of ADA-related litigation has brought thousands of new threats of lawsuits against unsuspecting business owners.
Unscrupulous lawyers file hundreds lawsuits just sitting in the office. It doesn’t matter if a webpage is compliant or not. They are just looking to get an average settlement of $10,000 to $15,000.
Our elected officials cannot continue to turn a blind eye to this crisis. Business owners across the state have been raising the alarm, calling for common-sense reforms that protect both accessibility and small businesses. Yet our lawmakers have failed to act, allowing these mega-trial firms to continue their abusive practices unchecked.
California’s minority-owned businesses are particularly vulnerable to these lawsuits. Many of these businesses already face unique challenges, including language barriers and limited legal resources. ADA lawsuit abuse compounds these difficulties, threatening not only the livelihoods of business owners but also the jobs and services that sustain local communities.
It is time for our lawmakers to stand up for small businesses and implement reasonable legal reforms. We need policies that preserve the spirit of the ADA while curbing its exploitation. This approach would protect the rights of people with disabilities while shielding small businesses from frivolous lawsuits.
California’s hospitality industry is a cornerstone of our economy, providing jobs, fostering tourism, and strengthening our communities. But we cannot continue to thrive under the constant threat of legal extortion.
Our legislators must prioritize common-sense reforms to stop the abuse of the ADA and ensure the law is used to promote genuine equality — not to line the pockets of opportunistic lawyers.
Neil Bhakta is the South Pacific director of the Asian American Hotel Owners Association, representing small business owners in the hospitality industry across Southern California.
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