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A "New Sheriff" in Town, the Department of Justice
Auditing Hotels for ADA Compliance

Cost Effective Steps for a Proactive ADA Compliance Program


By Jim Butler, Hotel Lawyer | Author of
March 5, 2009

The Americans with Disabilities Act, or ADA, is an important federal law applicable to all hotels in the United States because they are places of "public accommodation." And just as the federal Civil Rights Act became a powerful instrument to prevent discrimination by hotels, the ADA is now assuming commanding importance in eliminating "barriers" to the use and enjoyment of hotels, restaurants and other facilities governed by the act.

In tough economic times, we all want to slash "unnecessary" expenses, but the costs of a proactive ADA compliance program deserve a more "critical" rating than many have given it up to now. And as the saying goes, you can pay a dollar for prevention today or many times that amount tomorrow in defending litigation and meeting a higher standard after your operation has been put under a plaintiff's microscope. The Department of Justice's recent ADA sweeps in New York City, and the rising tide of private ADA lawsuits filed against hotel owners are compelling proof.

We predict more DOJ sweeps and enforcement action in U.S. cities in 2009 and 2010, and significantly increased enforcement efforts by private "true believer" zealots and blackmail artists as well.

How can anyone suggest spending money on ADA today unless you "have" to? 

Notwithstanding survival-style budget slashing everywhere, we suggest that a proactive ADA prevention approach is a critically necessary expense. What if a doctor reviewed your health scan tests and said: "You have a very high risk of heart attack in the near future unless you do something immediately." And what if medical science had advanced to the point that by paying $1,000 for a simple procedure or pill, you would have a 80-90% chance of avoiding the heart attack altogether. You might not want to spend $1,000 now, but most people would rather do that than suffer the risk of the heart attack and expense of the problem later.

In other words: "You can't afford not to do it!"

ADA compliance is very much the same. 

Cost effective steps that can bring you into "good enough" compliance? The 80-20 rule. 

With the practical experience gained over the past decade in handling more than 300 ADA cases, we have real time experience in the field, seeing what conditions and issues create the most trouble for hotels, restaurants and other facilities. We have seen how the same red flags are sure to catch attention. We have a broad experience and litigation-tested sense of as to what cost effective steps can bring you into "good enough" compliance to get you through most situations.

By having experts inspect your facility BEFORE the private litigants or government become 'interested" in your property, we find that a corollary of the 80-20 rule applies. This means that for something like 80% of the problems (the high-profile, red-flag items that usually catch attention) can be mitigated for something like 20% of the cost that would otherwise be involved once your property is under the scrutiny of a private plaintiff or the government in a litigation track. 

Can you afford NOT to pay pennies today to save big dollars tomorrow? 

A quick review on how ADA enforcement has taken on new prominence. 

Considering that the Department of Justice started major ADA compliance sweeps under the conservative Bush Administration, we foresee activity stepping up to an entirely new level under President Obama. We think that this will be a sea change, not unlike the Kennedy and Johnson administrations stepping up civil rights enforcements. 

You also need to remember that the ADA provides for enforcement by private litigants, and they have become extremely active on everything from "drive by" checks on parking lots and other exterior barriers, to web "surf bys", swimming pool and a seemingly endless array of issues. As noted earlier, the plaintiffs or their counsel are often disabled persons who are on a mission to make the world equally accessible to all disabled people, whatever the cost or practicality. 

The Department of Justice "ADA Sweeps"
in NYC's Times Square theater district

I recently caught up with my partner, Marty Orlick, who has defended clients in more than 300 Americans with Disabilities Act (ADA) lawsuits, many of them involving hotels, restaurants and hospitality facilities. 

Jim Butler:  Marty, you are always traveling on behalf of our national hotel clientele, doing ADA audits and other work -- but why so much time in spent in New York City the past few years? 

Marty Orlick: I have been defending clients in a number of the Department of Justice's (DOJ's) ADA investigations. A number of our clients have properties in New York, and one of them was included in the DOJ's "Manhattan Hotels/Time Square Theater District ADA Compliance Review Survey", a sweep of hotels around Time Square. I am the only California lawyer involved in this DOJ investigation. 

A complaint was lodged by a disabled tourist with the DOJ against one of the 60 Theater District hotels, not our client's property. Some of the hotels are over 100 years old, while others are newly built or renovated properties. 

Jim: Why is the DOJ auditing hotels about ADA compliance?
Marty: Well, the DOJ has primary jurisdiction to enforce the ADA- a piece of Civil Rights legislation passed by Congress in 1990 that is intended to prohibit discrimination based on disability, giving the disabled population full and equal access to places of public accommodation. Since there is no federal "building department" which is responsible for enforcing the ADA in private construction, the DOJ has left enforcement of the ADA to local building departments. However, when serious violations are brought to the attention of the DOJ in areas where significant and high profile industry-wide impacts can be achieved, the DOJ, through the offices of local U.S. Attorneys' offices around the country, will enforce the ADA. 
Jim: And will you remind our readers how that relates to hotels?
Marty: Sure. The ADA is divided into five "titles" or sections. Hotel owners and lawyers are most familiar with Title III which addresses places of public accommodation and mandates the removal of architectural and communication barriers, requires modifications in policies and procedures, and provides for other accessible services.
Jim: Were hotel owners the target of the survey or did they specify management companies?
Marty: It was fairly inclusive -- the survey, signed under penalty of perjury, was sent to owners, managers, and their corporate organizations. And the survey specifically included all other hotel properties owned or operated by the hotel and management companies in that jurisdiction.
Jim: And what kinds of properties were included in the survey -- are they looking at just the high end hotels?
Marty: The survey included nearly every property within a mile of the Time Square Theater District without differentiation--all kinds of properties: boutique, luxury, national brands, limited service - no type of property was immune. What the hotels had in common was their proximity to Time Square.
Jim: So tell us about this survey, The Manhattan Hotels ADA Compliance Review
Marty: The 20-page survey document is called "The Manhattan Hotels ADA Compliance Review" and it was mailed to 60 Manhattan hotels early in 2005. The questionnaire details every aspect of the ADA that applies to hotels, and the hotels were given 30 days to respond under oath. Depending on the survey responses and the DOJ's informal survey by its access consultant, the hotel was either deemed compliant or was scrutinized more carefully. 
Jim:  What kinds of items were included in the 20-page questionnaire?
Marty: I have been doing ADA audits for more than 10 years, and I can assure you that the survey was comprehensive in scope. It included ADA standards well-understood in the hotel industry such as: accessible parking, public entrances, reception areas, paths of travel, conference rooms, fitness rooms, pools, accessible guest rooms and of equal importance, dispersal of accessible guestrooms across the full range of available rooms, locations, floors, views, and similar important factors. This is not a "drive-by" snapshot as we have seen. It is a comprehensive survey of the hotel's accessibility features. The DOJ is interested in reviewing the hotel's written ADA policies, practices and procedures manual. 
Jim: What level of detail was required for each of these areas?
Marty: The level of detail required was significant. The DOJ wants to know not only if the hotel had the required number of guest rooms for disabled guests, the required number of rooms with roll-in showers, and the number of rooms for the hearing impaired. They want to know if these rooms are dispersed equally among types of rooms, and each type of suites, smoking / non-smoking; king beds / double beds; rooms with views / without views; spread equally among all floors. They want to know how these rooms are priced relative to other rooms. The DOJ wants to know about on-property and on-line registration and check-in policies and procedures.
Jim: What areas on the survey were unexpected?
Marty: Some hotels were surprised that the DOJ asked for written policies and procedures relative to disabled guests and accommodations. If modifications were made to accommodate the ADA in the past, the DOJ wanted a copy of the permits for the work performed. The DOJ has asked for "as built" drawings which are then reviewed by the DOJ's architectural staff for ADA compliance. The DOJ doesn't leave any stones unturned. They asked hotels for any imminent plans for ADA modifications, as well as for those planned in the next 3, 6 and 12 months. 
Jim: So, after the hotels sent in responses, what happened next?
Marty: A team of experts from Main Justice and from the New York Attorney General's office made on-site inspections to verify the information provided by each hotel. The team included investigators, architects specializing in accessible design and other professionals. 
Jim: And after the site inspection what happened?
Marty: It is an on-going process. The DOJ and New York U.S. Attorney's office are very serious about ADA compliance. Hotels are making architectural changes as well as implementing new policies and procedures, depending on the results of the site inspection.
Jim:  Are there properties that are refusing to participate or not moving fast enough for the DOJ?
Marty: Initially, there were a number of hotels that dragged their heels and a few that refused to cooperate. That was a big mistake, in my opinion. The DOJ and the New York AG are committed to a barrier-free hotel industry and can impose penalties as well as file lawsuits. Hotels are not, and should not be interested in either of those scenarios. Likewise, the DOJ would prefer to enter into a Voluntary Compliance Agreement with the hotels rather than to force compliance through litigation. 
Jim: What has your role been as counsel to certain hotels involved in the survey?
Marty: My role has been to protect the owner and management company by conducting an independent survey of our client's hotel, assessing the level of accessibility, retaining experts, recommending cost-effective barrier removal strategies, presenting the facts to the DOJ and negotiating a reasonable resolution, taking into account the DOJ's objectives and the resources of the hotel. 

You know, Jim, I am the only California-based attorney that has been involved in this process. It has allowed us to keep our finger on the pulse of ADA enforcement activity and help our clients nationwide to bring their properties up to the standards required by the DOJ in New York and to give our clients a heads up on the DOJ's investigations nationally.

Jim: But what if you don't have a hotel in New York? Should you care about this?
Marty: Yes, absolutely you should care. First, barrier removal is required by law and is good for business. The DOJ's reach is nationwide and it is possible they will target other cities like Boston, San Francisco, Chicago, Miami, Orlando, and San Diego -- cities that attract a large tourist population. The DOJ would engage the help of the Attorney General's office in those jurisdictions.
Jim:  How is the DOJ survey and inspection process different from the ADA audits you perform and your work in defending ADA lawsuits?
Marty: Our ADA compliance audits are very thorough - we cover all the areas included in the DOJ's survey. But the stakes are much higher with Main Justice and the Attorney General's office involved.
Jim: Why is that?
Marty: Because hotel clients that have experienced ADA litigation -- particularly in California where plaintiffs can recover actual, punitive and statutory damages, as well as attorneys fees -- understand that the lawsuit is quite often about the money and less about strict compliance with the ADA Standards. You begin to question their true motives. While there are legitimate plaintiffs' groups working toward increased ADA compliance, there are many others that are of the "sue and settle" variety: they seem to be more interested in the payment of damages and attorney's fees and less interested in the removal of architectural barriers or changes in hotel procedures. What you have in Manhattan is the highest level government enforcement agency pursuing real change. The DOJ and the AG have the resources to follow up repeatedly, and the muscle to enforce change.
Jim: So, if I am a hotel owner or operator, and I receive this 20-page questionnaire about ADA compliance, what should I do first? 
Marty: Of course, the first thing to do is to call your ADA experts.

About the Author:
Jim Butler is one of the top hotel lawyers in the world. GOOGLE �hotel lawyer� or �hotel mixed-use� or �condo hotel lawyer� and you will see why.  He devotes 100% of his practice to hospitality, representing hotel owners, developers and lenders.  Jim leads JMBM�s Global Hospitality Group®�a team of 50 seasoned professionals with more than $40 billion of hotel transactional experience, involving more than 1,000 properties located around the globe. In the last 5 years alone, they have brought their practical advice to more than 80 �hotel-enhanced mixed-use� projects, a term Jim coined to fill a void in industry lexicon.  This term describes one of the hottest developments in real estate-where hotels work together with shopping center, residential, office, retail, spa and sports facility components to mutually enhance the entire project�s excitement and success. Jim and his team are more than �just� great hotel lawyers.  They are also hospitality consultants and business advisors.  They are deal makers.  They can help find the right operator or capital provider. They know who to call and how to reach them. They are a major gateway of hotel finance, facilitating the flow of capital with their legal skill, hospitality industry knowledge and ability to find the right �fit� for all parts of the capital stack.  Because they are part of the very fabric of the hotel industry, they are able to help clients identify key business goals, assemble the right team, strategize the approach to optimize value and then get the deal done.  Jim is the author of the Hotel Law Blog,  He can be reached at +1 310.201.3526 or [email protected].


Jim Butler
Chairman, Global Hospitality Group
Jeffer, Mangels, Butler & Marmaro LLP
1900 Avenue of the Stars, 7th Floor
Los Angeles, CA 90067-4308
(310) 201-3526 direct
[email protected]

Also See: Big Changes Proposed to the ADA May be Very Expensive and Cause More Litigation for the Hotel Industry / Jim Butler / September 2008
How Hotel Swimming Pools May Spawn ADA Lawsuits / May 2007
Landmark ADA Decision Spells Relief for California Hotels / Marty Orlick / November 2006



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