The proposed legislation modifies existing laws governing how individuals can seek damages against small businesses for ADA violations. Currently, businesses face potential liabilities that include actual damages plus attorney's fees that can be tripled, leading to significant financial consequences. AB150 intends to mitigate these risks by mandating a pre-emptive notification period and allowing for a good faith correction of issues prior to litigation. This is anticipated to reduce the number of frivolous lawsuits which can disproportionately affect smaller enterprises, thereby encouraging them to improve accessibility without the fear of immediate legal actions.
Summary
Assembly Bill No. 150, introduced by Assembly Member Mathis, seeks to amend Section 54.3 of the California Civil Code, specifically addressing the rights of disabled persons and altering the liability imposed on businesses concerning alleged violations of the Americans with Disabilities Act (ADA). The bill outlines that a small business, defined as one employing fewer than 50 full-time employees, is required to receive a formal notice of any claimed ADA violation at least six months before any legal action can be taken against it. This aims to give businesses an opportunity to rectify any noted compliance failures without immediate legal repercussions.
Contention
Key points of debate center on the efficacy and fairness of this proposal. Proponents argue it protects small businesses from opportunistic lawsuits and promotes adherence to ADA regulations through constructive dialogue rather than adversarial court actions. They claim it will help ensure that small businesses can continue to operate without the threat of crippling legal fees over sometimes minor compliance issues. Conversely, critics assert that it could create barriers for individuals with disabilities seeking redress, as the mandated notice period might allow ongoing violations to persist without accountability. The potential for abuses in notifying businesses could also dilute the urgency attached to addressing accessibility issues.