I researched a lot on this and seem to be getting conflicting answers on SO and all of the web. I understand that with Section 508 that compliance DOES NOT equal accessibility.
Biggest thing is that the UI/UX designer is being told that keyboard shortcuts for the dropdown menu NEEDS to have keyboard shortcuts to be 508 compliant. I see Windows Forms applications having this, but for web development I do not think that is mandatory to be "compliant"
My other question that was answered is here: MVC 4 site 508 compliant