US Electronic Signature Laws FAQ

Purpose: To help answer some of the questions you may have around the legality of our e-signature feature.

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BambooHR provides its E-Signature Service to facilitate the electronic signing of documents (and the storage of those e-signed documents) involved in the relation between an employer and their employees, employee candidates, or contractors (“counter-parties”). The service is by design to facilitate electronic signatures under the provisions of the Uniform Electronic Transactions Act (UETA) and Electronic Signatures in Global and National Commerce Act (ESIGN), but whether the law applies to you or the counter-party depends on the applicable laws of the State or other jurisdiction where you and the counter-party are located. You should consult an attorney familiar with the e-sign laws applicable to your jurisdiction(s) before using this service. Please note that although an employer may request a document via the E-Signature Service, counter-parties may still request to sign a document manually. See Section 16 of the BambooHR Terms of Service for further details.

Neither you, nor the counter-parties are required to use our E-Signatures Service, but should you both choose to use it, the e-signed document will be available for access on the BambooHR Service as long as you continue to use the Service. Should you choose to cancel your subscription, you will be responsible for downloading the e-signed documents.

All documents signed using the E-Signatures Service will be documented with the date and times that documents were requested and signed, the name and email address of the requester/signer(s), and the IP address used for such actions. It also contains a unique document ID.

It is important to note that when counter-parties sign a document electronically using the E-Signature Service, the rights and duties associated with that document are solely those of the counter-parties. BambooHR is not a party to the document and carries no liability or responsibility with respect to the correctness, validity, or enforcement of the document; nor does BambooHR have any liability or responsibility with respect to the legal or non-legal aspects of the document or any dispute arising as a result of the document. BambooHR’s sole responsibility is the E-Signature Service and customer service associated therewith.

The e-signature feature is available on all  Advantage, Core, and Pro accounts. If you would like to upgrade your account to include e-signatures, please contact our Expansion department.

What research was done to ensure the legalities of e-signatures?

When we first created our E-Signature tool, we carefully consulted both government requirements and legal counsel to ensure that we comply with all standards listed to implement, create, and store electronic forms and signatures.

Compliance is vital for organizations and especially important to HR, which you already know! We, at BambooHR, are paying attention to and researching changes in requirements to make sure BambooHR always makes the grade.

While we provide some updated forms (I-9, W-4) to help save you time with your setup and implementation, you can always edit the forms and their fields at any time within the signature template. If you find an issue with a form we provide or have any concerns, please reach out to a support hero who can help you stay compliant.

Are there US laws regarding e-signatures?

UETA and ESIGN Act

Both the United States Electronic Signatures in Global and National Commerce (ESIGN) Act, and the Uniform Electronic Transactions Act (UETA) have four major requirements for an electronic signature to be recognized as valid under U.S. law. Those requirements are:

  • Intent to sign: Electronic signatures, like traditional wet ink signatures, are valid only if each party intended to sign.
  • Consent to do business electronically: The parties to the transaction must consent to do business electronically. Establishing that a business consented can be done by analyzing the circumstances of the interaction, but consumers require special considerations. Electronic records may be used in transactions with consumers only when the consumer has:
    • Received UETA Consumer Consent Disclosures
    • Affirmatively agreed to use electronic records for the transaction
    • Has not withdrawn such consent
  • Association of signature with the record: In order to qualify as an electronic signature under the ESIGN Act and UETA, the system used to capture the transaction must keep an associated record that reflects the process by which the signature was created, or generate a textual or graphic statement (which is added to the signed record) proving that it was executed with an electronic signature.
  • Record retention: U.S. laws on E-Signatures and electronic transactions require that electronic signature records be capable of retention and accurate reproduction for reference by all parties or persons entitled to retain the contract or record.

Source: DocuSign