Telegraph Herald - Dubuque, IA


 
Sunday, February 7, 2010
What's the Real Cost of accommodation?
ADA compliance often comes with a price, the question is, how much?
Businessman Discussing a Document With a Businesswoman Sitting in a Wheelchair
Photo by: Digital Vision
Businessman Discussing a Document With a Businesswoman Sitting in a Wheelchair

Much has changed since 1990, when the landmark Americans with Disabilities Act became law.

While barriers remain, proponents argue the United States has become a more accommodating place in the two decades since President George H.W. Bush signed the historic act affording civil rights protections to individuals with disabilities.

What hasn't changed is the debate over the costs of ADA to businesses -- especially smaller firms. While research suggests workplace accommodation comes with minimal expense, organizations like the U.S. Chamber of Commerce assert the act, particularly its provision involving commercial enterprises, has had a significant financial impact on business.

"Reasonable" accommodations vary and, intrinsically, so do the costs. From changing door knobs and building ramps to hiring personal assistants or providing flexible scheduling, the expense can range from a few dollars to thousands.

So what's the truth? It depends.

On the job

Peter D. Blanck has extensively researched the impacts of ADA. In a collaborative study, published

Basics of the Americans with Disabilities Act

The 1990 Americans with Disabilities Act requires that employers with 15 or more employees make reasonable accommodations in the workplace for employees with disabilities.

Reasonable accommodations must be made on a case-by-case basis and are not required when costs would constitute an undue hardship for an employer. What are reasonable accommodations?

Adjustments or modifications which range from making the physical work environment accessible to restructuring a job, providing assistive equipment, providing certain types of personal assistants (e.g., a reader for a person who is blind, an interpreter for a person who is deaf), transferring an employee to a different job or location or providing flexible scheduling.

Reasonable accommodations are tools provided by employers to enable employees with disabilities to do their jobs, just as the employer provides the means for all employees to accomplish their jobs.

For example, employees are provided with desks, chairs, phones and computers. An employee who is blind or who has a visual impairment might need a computer which operates by voice command or has a screen that enlarges print.

What is undue hardship?

This legal term is defined in the ADA as an action requiring significant difficulty or expense for the business/employer, considering the following factors:

* The nature and cost of the proposed accommodation.

* The overall financial resources of the business and the effect of the accommodation upon expenses and resources.

* The impact of the accommodation upon the operation of the facility. When barrier removal is done in compliance with the law, a business may be entitled to:

* A tax credit of up to $5,000 and/or * A tax deduction of up to $15,000. Only small businesses (with $1 million or less in revenue OR 30 or fewer full-time employees) can be eligible for both the tax credit and the tax deduction. Larger businesses may be eligible for a tax deduction only. This means, each year for small businesses, 50 percent of expenses spent for accessibility improvements (more than $250 and up to $10,250) are eligible as a tax credit.

Any excess expenditure is tax deductible, up to $15,000. This is available every year and any unused credit can be carried forward.

Sources: U.S. Department of Labor Office of Disability Employment Policy and Proudly Accessible Dubuque

resources to help businesses

- ProudlyAccessibleDubuque.com

- www.dol.gov/odep/pubs/ek97/process.htm

in 2006, the Syracuse professor and his colleagues argue there is little empirical evidence to support the assertion that workplace accommodation costs are "burdensome" for the employer.

Critics, the study claims, argue reasonable accommodation "creates an employment privilege or subsidy for individuals with disabilities. "This presumes, all else being equal, that the net costs of accommodations exceed the benefits to employers and individuals with disabilities."

Not so, said Blanck, chairman of the Burton Blatt Institute at Syracuse and former University of Iowa professor.

A Job Accommodation Network study found the median cost of workplace accommodations was $200, with one-fifth of the cases examined involving no costs. While the study is dated, Blanck said the figures pretty much hold today.

More important, Blanck said, the JAN survey found employers who hired candidates with disabilities enjoyed extensive, indirect benefits -- far outweighing the cost of accommodation.

"The broader picture to consider is in the area of workplace life," he said. "ADA is an anti-discrimination law meant to level the playing field, but you shouldn't necessarily assume with that civil right comes cost. There's no doubt that in certain cases costs come with implementation, but the result is a qualified worker who is very loyal and productive and maintains a job for the employer."

The JAN report found 87 percent of employers surveyed were able to retain a valuable employee because of an accommodation. Three-quarters said the assistance increased productivity and more than half said the accommodation eliminated the cost of training.

Researchers say focusing on capital outlay overlooks the immense indirect benefits.

Debated data

In September 2008, ADA was amended, effectively revising the definition of "disability" to more broadly encompass impairments that substantially limit a major life activity.

It was in the changes to the Act's Title III regulation that the U.S. Chamber of Commerce took umbrage. The advocacy organization argued the cost of accommodations to "commercial facilities" would have a "substantial impact on essentially all businesses operating in the United States."

"Accessibility is not a free good nor is it a one-time expense," the chamber stated in a letter to federal regulators not long before the amendments became law.

The chamber and other organizations disputed the federal Regulatory Impact Analysis as "incomplete and incorrect" in measuring the costs of the ADA changes.

In a letter late last year to the Equal Employment Opportunity Commission, HR Policy Association called into question the estimate that the changes in the act would cost less than $100 million to implement. The association argued that a more accurate analysis suggests the costs would top $300 million for the first year and likely exceed $101.9 million per year on a recurring basis.

"This is a great example of how a well-intentioned law has got some very difficult, very complicated regulations for people to comply with," said Michael Eastman, executive director of Labor Policy for the U.S. Chamber. "That's the tension. You have a well-meaning employer committed to accessibility but sometimes the standards -- and there are thousands of pages -- don't make sense."

Clearing confusion

Making sense of the regulations is where Proudly Accessible Dubuque comes in.

The organization was created to help area businesses wade through the complexities of ADA, assisting them in making "practical and reasonable" accommodations.

"Call us. We have really interesting and innovative ideas that will get these things done without causing bankruptcy," said Katrina Wilberding, Proudly Accessible's executive director. "Our goal is to increase your business, not to put you out of business."

First and foremost, there are exceptions to the rules. Employers are not required to provide accommodation where doing so would impose an undue hardship on the business.

In many instances, Wilberding said, improving public access can be as simple as changing a door knob to comply with ADA standards, or installing a full-length mirror in the bathroom.

"One of the most cost-effective kinds of suggestion I've ever heard is to put up a little sign, saying 'Accessible Entrance this way,'" she said. "This is easy. This is simple. This isn't rocket science."

Proudly Accessible Dubuque has certified about 150 businesses for meeting accessibility standards. Tony Roma's restaurant at Grand Harbor is on that list.

Manager Tom Canfield said that the second-story restaurant installed an elevator, a pricey proposition but, Canfield said, well worth it.

"It's cheaper to do it in the beginning than add it on later," he said. Besides, Tony Roma's wants to be known as "user-friendly" to all of its customers, Canfield said.

The bottom line for business, Wilberding said, is the bottom line. As of the 2000 census, 14 percent of working Dubuque residents had some disability.

That's a big market to tap into.

"What is the cost of not doing it?" Wilberding asked of accommodation.


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