Electronic Signature Legality

Overview

Onboarding offers Electronic Signatures and we are often asked about the legality of Electronic Signatures.

The purpose of this document is to provide you with some general guidance relative to the existing laws, and to provide an explanation of the features within Onboarding's Electronic Signature functionality that are designed to help your business comply with applicable law.

Note: The information provided in this document is for informational purposes only, and should not be construed in any way as legal advice.

Bullhorn recommends that you consult with local counsel relative to your particular business and legal requirements.

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Generally, what are the primary laws or statutes in effect regarding electronic signatures?

Traditionally, contracts were signed with pen and ink but electronic signatures have increased in popularity over the past two decades. As a result, some of the first electronic records laws were enacted in the United States as far back as 1999.

Two major bodies of law covering electronic signatures in the United States are the UETA and ESIGN.

The Uniform Electronic Transactions Act (UETA) is a uniform set of laws that has been adopted in the majority of the states in the US, and The Electronic Signatures in Global and National Commerce Act (ESIGN) is a nearly equivalent federal law.

Both statutes provide a legal framework under which electronic signatures are deemed valid provided the electronic signature, and surrounding processes, meet certain requirements.

In general, these minimum requirements include requiring evidence of the following:

  1. The user had the intent to sign the document.
  2. The user consented to doing business electronically.
  3. The signer is who they say they are.
  4. The document has not been tampered with or edited after signing and the document is available to all relevant parties.

How is Onboarding Electronic Signatures designed to help your company satisfy applicable laws?

Bullhorn has designed the Onboarding Electronic Signature feature to satisfy certain requirements of ESIGN and UETA and most equivalent laws in other jurisdictions.

That said, however, ESIGN is a federal act and not every US state has adopted UETA.

Bullhorn recommends you review applicable local laws in your jurisdiction to determine your specific requirements.

The Onboarding Electronic Signature functionality includes the following features designed to assist customers in satisfying the four major requirements of ESIGN and UETA.

  1. Intent - A popup appears alerting the user that they are about to sign the document.
  2. Consent - A popup appears prompting the user to give their consent to do business electronically.
  3. Authenticity - An audit trail within Onboarding tracks the user login, creates a timestamp and tracks the IP address of the signer.
  4. Integrity - An audit trail exists to track changes to the document and prevents changes to the document after it has been signed. The user also receives an email with a PDF copy of the fully executed document.

What about outside the United States?

Much of the major legislation in the United Kingdom, European Union, and Australia has similar requirements to UETA and ESIGN. Depending on where your business is located and with whom you conduct business, a variety of local laws and statutes may apply to you.

As stated previously, as with any legal concern in regard to your business you should contact your legal counsel for guidance.

What should I do if I have additional questions about Electronic Signatures?

Regulations are always subject to change and your legal counsel is the best resource for guidance in regards to the most current and applicable laws impacting your business.

Proprietary Notice and Disclaimer

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THE INFORMATION PROVIDED IN THIS DOCUMENT IS PROVIDED BY BULLHORN “AS IS” WITHOUT ANY WARRANTY OF ANY KIND, AND BULLHORN EXPRESSLY DISCLAIMS ANY AND ALL WARRANTIES WHETHER EXPRESS OR IMPLIED AS TO THE ACCURACY, INTEGRITY OR QUALITY OF THE INFORMATION TO THE MAXIMUM EXTENT PERMITTED BY LAW.

The information contained herein does not constitute legal advice and is not to be relied on for compliance purposes. Bullhorn does not offer any advice, explanation, opinion, or recommendation about you or your company’s specific legal situation or compliance or any possible legal rights, remedies, defenses, options or strategies applicable to you or your business. Bullhorn strongly recommends that you review your local laws and consult with a local attorney relative to the subject matter contained herein. The information contained herein is believed to be accurate as of the date hereof and Bullhorn undertakes no obligation to update the information.