07/15/2008
Proposed ADA rule includes a new regulatory tax on small firms and positions small businesses as easy prey for unscrupulous trial lawyers
CONTACT: Melissa Sharp: 202-314-2068
Washington, D.C.--Karen Harned, executive director, National Federation of Independent Business Small Business Legal Center, issued the following statement as a preview to her testimony today at the Department of Justice's hearing on DOJ's proposed Americans with Disabilities Act regulations:
"NFIB acknowledges that the Department of Justice attempted to lessen the burdens associated with these regulations on small businesses. Unfortunately, we are afraid that the department's attempt to create a bright-line rule indicating when a small business is compliant with the ADA has resulted in imposing a nearly impossible standard that may cost many small business owners their businesses.
"The rule's 'qualified small business' safe harbor provision, which would deem a small business to have met their ADA obligation if they have spent 1 percent of their gross revenue on barrier removal, is in reality not a safe harbor for small business. And, it may instead create a feeding frenzy for trial lawyers looking for easy targets to drag into court. Tying this provision to a small business' gross revenue means that businesses operating at a loss will still be held accountable for spending 1 percent of their gross revenue on barrier removal. Struggling small businesses will not be able to make these types of expenditures, making them easy targets for trial lawyers that want to abuse the ADA to sue countless small business owners.
"Further NFIB is very concerned that this attempted safe harbor provision is in reality a new regulatory tax that would be imposed in perpetuity on small business owners. Investing 1 percent of a small business owner's gross revenue into barrier removal biannually is a very significant cost and creates a new regulatory tax on small business owners. DOJ, unfortunately, failed to consider this cost in their economic impact analysis.
"NFIB will be submitting comments further detailing our concerns with this proposed rule. We strongly hope DOJ will reconsider implementing this rule as it stands now, and we urge DOJ to reevaluate what the actual costs associated with complying with this proposed rule will be for small business."
DOJ's public hearing is scheduled for July 15, 2008, 9 a.m. to 5 p.m., Eastern Daylight Time. The hearing will be held at the Marriott Hotel at Metro Center, 775 12th Street, N.W., Washington, D.C., 20005.
