Complying With Davis-Bacon: Electronic Signatures Are More Than Just for Saving Paper

With most states now adopting the Uniform Electronic Transactions Act (UETA) and the Electronic Signatures in Global and National Commerce Act (ESIGN), the use of electronic signatures are legal and widespread in both commercial and payroll-related records. These two acts establish the fact that electronic documents signed using software are legal and carry the same weight as traditional physical documents with handwritten signatures. It is specified that a document or signature cannot be legally denied of effect or responsibility simply because it is in electronic form.

However, an electronic signature is only legal if the signer wanted to sign the document in the first place. If there was no intent to sign or there was force in acquiring the signature, it is considered null and void. For example, if a person accidentally chooses someone else's signature profile to sign his own documents, the documents will be declared void because the owner of the electronic signature profile did not want to sign the document to begin with.

This is especially important for contractors who have to process the payroll for a large number of people. Under the Davis-Bacon Act, all contractors who will work on government projects will need to pay their employees the prevailing wages for similar projects in the area. This act ensures that citizens are given fair wages and that there are no "kickbacks" in the payroll process. However, this will mean that employers will have to get their employees to sign their payroll reports every cycle. Using an e signature system will save them a lot of time and will generally make their process more organized.

Does the Davis-Bacon Act allow electronic signatures? In Section 4-4 of the deskguide released by the Department of Labor, it states that companies are required to submit a Statement of Compliance that is signed and submitted after every payroll cycle. This document must be signed by someone who has direct authority to release funds or salaries to the employees. The deskguide specifies that an electronic signature is acceptable on certified payrolls and related compliance statements as long as the owner of the signature has the actual intent to sign the document. As stated in ESIGN and UETA, electronic signatures have the same legal weight and effect as handwritten ones. Using an electronic system reduces the risk of getting the payroll report returned due to missing signatures or delays, making a company's payroll system more efficient.

Saving paper and cutting costs in the workplace is not the only reason why companies should switch to electronic systems. By going completely paperless, they are helping the environment more. However, the convenience that e signature systems provide is what gives it more value, rather than fact that it cuts cost.

DocuSign is more than just electronic signatures, it's a complete web-based eSign solution working to help you close more business and make more money.