Oregon Business Leadership Network
Employers committed to the inclusion of qualified people with
disabilities in the competitive workplace and as consumers

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Americans with Disabilities Act (ADA)



The Americans with Disabilities Act (ADA) took effect in July 1992.. Essentially, it is civil rights legislation intended to protect people with disabilities from discrimination.

Title 1 of the ADA protects qualified individuals with disabilities from employment discrimination. The ADA does not interfere with an employer's right to hire the best qualified applicant. Nor does the ADA impose any affirmative action obligations. The ADA simply prohibits employers from discriminating against a qualified applicant or employee because of her disability.

Every company in America that has 15 or more employees is subject to Title 1 of the ADA.

 

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THE OREGON EXPERIENCE

Bullet  OBLN REAL DEAL Series - Accommodation and Supervision of Workers with Hidden Disabilities and Mental Health Issues.

RESOURCES

Bullet  DBTAC Northwest ADA Information Center - DBTAC Northwest customizes ADA compliance information for each business throughout the  Pacific Northwest to take the fear out of litigation, provides access surveys to improve access to goods and services,  and information on how to take advantage of tax incentives for business to improve the bottom line.

Bullet What Were They Thinking? - Overview and perspective on the Title 1 of the ADA by Don Brandon and Jo Fleming, Region X Disability and Technical Assistance Center

Bullet ADA Build it Right - A Portland-based firm that, through inspections, consulting, and training assists Oregon companies in designing or adapting facilities to be compliant with the requirements of the ADA.

Bullet  Job Accommodation Network (JAN) Portal for Employers - General information and guidance.

Bullet  Employers Practical Guide to Reasonable Accommodation - A really helpful summary produced by the Job Accommodation Network.

Bullet  Your Responsibilities as an Employer - A summary of employer-related issues in the Americans with Disabilities Act from the Equal Employment Opportunity Commission.

Bullet  Small Employers and Reasonable Accommodation - An outline of "reasonable" accommodation considerations for small employers.

Bullet  ADA Website - The federal government's official website on the Americans with Disabilities Act. Among the useful resources on this site are:

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What Were They Thinking?

By Don Brandon and Jo Fleming
Region X Disability and Technical Assistance Center

I heard one employer exclaim, “What was Congress thinking when they passed the ADA?” Have you ever felt that way? The ADA does require that employers provide reasonable accommodation to qualified people with disabilities. Leading up to the passage of the ADA in 1990, Congress’s thinking was supported by research from the Job Accommodation Network (JAN) which has kept records on the costs of accommodation for 25 years. At that time, JAN studies revealed that 15% of all accommodations cost nothing, 50% cost less than $500, 88% cost less than $1000, and only 2-3% of accommodations cost more than $2000!

This expense was balanced against the manageable investment the federal government had made on accommodation in the 16 years since the passage of the Rehabilitation Act of 1973, Section 504 requirements.  The Rehabilitation Act was the first federal law that designated disability as a protected class. The case law under the Rehabilitation Act demonstrated that accommodating qualified individuals with disabilities was not onerous.

Another governmental expense considered was the 200 billion dollars spent to keep 67% of 43 million people with disabilities in dependent situations and the 100 billion dollars in lost federal revenue because this group of people paid no taxes. These losses were weighed against programs designed to rehabilitate people with disabilities that could demonstrate that for every dollar spent to rehabilitate a person with a disability, they contributed between 7 to 11 dollars back in taxes during the life of their employment.

Congress also considered the high unemployment rate of people with disabilities (67% in 1989) and the employment shortage that was projected for the year 2000 that would need to be filled by women, minorities and people with disabilities.

A little scratching below the surface revealed that the biggest barrier to people with disabilities was attitudinal, and many employers were anxious about how to manage and work with people with disabilities. This led to a wholesale denial of opportunity and equality in employment.

All these factors were involved in the decision of Congress to pass the Americans with Disabilities Act in 1990.

One of the key elements initiated to bridge the gap between knowing and doing was to require that otherwise qualified people with disabilities be entitled to consideration of reasonable accommodation to perform the essential functions of the job they held or desired.

In business, successful employers learns to balance two key factors in order to be profitable and remain open. These key factors or cornerstones in the “process” of building a profit-making business are:  1) efficiency, and 2) making money.  Good business decisions are made with these two key elements in mind.

Now let’s look at the ADA requirement to provide reasonable accommodation today.  In 2006, the Job Accommodation Network (JAN) conducted a research study in which the University of Iowa’s Law, Health and Disability Center interviewed 1,182 employers concerning workplace accommodations.  JAN reported that 46% of all accommodations cost nothing, 45% resulted in a one-time only cost, and only 7% of accommodations were ongoing.   Of accommodations with a cost reported, the typical cost was approximately $500.  As an example, the most requested accommodation request is a flexible work schedule. 

Here’s the bottom line for the knowledgeable employer.  There are some significant tax benefits and credits for businesses who wish to accommodate people with disabilities. 

Work Opportunity Credit.  An employer can qualify for a tax credit for hiring persons from certain groups, including a person with a disability participating in a vocational rehabilitation program.  The tax credit can save an employer 25% of the first $6,000 in wages (up to $1,500) for each employee who worked 120-399 hours in the first year or 40% of the first $6,000 for each employee who worked 400+ hours (up to $2,400). http://www.doleta.gov/business/incentives/opptax/

Disabled Access Credit.  A small business may be eligible for a tax credit for expenditures that provide access to persons with disabilities, including removal of barriers, interpreter services, audio training materials, modification of equipment or devices, etc.  This credit is equal to 50% of the eligible expenditures ranging from $250 to $10,250. http://www.ada.gov/taxincent.htm

Architectural Barrier Removal Tax Deduction.  Businesses of any size may claim a deduction of up to $15,000 a year for qualified expenses related to the removal of physical, structural and transportation barriers for people with disabilities. http://www.ada.gov/taxincent.htm

With tax credits and deductions available to employers, the cost of accommodation becomes nearly nothing. Cost-effective, right?  A Harris Poll reports that over 75% of employers say they are very satisfied with the performance of their employees with disabilities.

A survey of business who had made accommodations showed that the accommodation allowed the company to:

  • Retain an employee 87.1% of the time,
     

  • Hire (16.7%) an otherwise qualified candidate, or
     

  • Promote (11.5%) a qualified or valued employee.

Other factors of employer accommodation included:

  • 73.8% that reported the accommodation increased the employee’s productivity,
     

  • 55.4% that reported the accommodation eliminated the cost of training a new employee,
     

  • 50.4% that reported it increased the accommodated employee’s attendance.

  (Schartz, Hendricks & Blanck, 2008)

Here is the kicker, after having considered all the above information, if an employer can demonstrate that employing or accommodating an otherwise qualified person with a disability is an undue hardship, they don’t have to hire or accommodate an otherwise qualified applicant or employee.

So…what are you thinking?

 

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© Oregon Business Leadership Network, 2004 - 2008
Recruitment/Hiring/Retention/Return to Work/Accommodation/Cost Effective Strategies
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Lucy Baker, Executive Director, Email: lucy.baker@obln.org, Tel: (503) 281-1424
OBLN, 4134 N. Vancouver Ave., Suite 304, Portland, OR 97217
www.obln.org