Are electronic signatures legally binding?

Yes. Electronic signatures are generally enforceable under the ESIGN Act (15 U.S.C. §7001) and state UETA statutes when the four-part validity test is met: intent, consent, attribution, and reliable record retention.

Can I change the hourly rate after signing?

A rate change requires written amendment signed by both parties; unilateral rate increases risk breach claims unless the agreement allows adjustments and lists the notice procedure.

Is notarization required for an Hourly Fee Agreement?

Not typically. Most hourly service contracts do not require notarization, but specific state or industry rules or client policies may request notarial acknowledgement or RON for added verification.

How do I correct a signed agreement?

Create a written amendment signed by all parties or execute a rescission and replacement. Do not alter the original signed file; maintain audit trails for any corrective action.

How should I store signed agreements?

Retain signed copies in read-only PDF with an audit trail, back up securely, and follow retention schedules such as IRS guidance (IRC §6501(a)) and industry-specific rules like HIPAA.

What if a signer disputes their signature?

Preserve the audit trail (timestamps, IP, authentication logs) and any identity-proofing records. Electronic evidence demonstrating intent and attribution supports enforceability under ESIGN and UETA.

Electronic Signature
Templates
Other
Hourly Fee Agreement

Hourly Fee Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

What an Hourly Fee Agreement Covers

An Hourly Fee Agreement is a written contract between a service provider and a client that defines hourly compensation, scope of services, billing intervals, expense reimbursement, and termination rights. It establishes how hours are tracked and billed, sets dispute-resolution and notice procedures, and identifies governing law. When executed electronically in compliance with the ESIGN Act (15 U.S.C. §7001) or state UETA statutes, the agreement is generally enforceable, provided intent, consent, attribution, and reliable record retention are demonstrable.

Why use a clear Hourly Fee Agreement

A precise Hourly Fee Agreement reduces billing disputes, clarifies expectations, supports timely payments, and documents deliverables and termination terms. It also creates a record to support invoicing, tax reporting, and compliance with industry rules when retention and authentication requirements are met.

Who commonly uses Hourly Fee Agreements

Typical users range from independent contractors to professional firms who bill by the hour and need reliable documentation for billing and recordkeeping.

Freelancers and consultants who bill clients by time and require written payment terms.
Law firms and legal professionals recording billable hours and client retainer arrangements.
Agencies and contractors managing hourly staff or subcontractor engagements across projects.

Use this template when you need clear hourly billing mechanics, consistent invoicing, and evidence of mutual agreement on rates and scope.

Representative signers and roles

Client Representative

A client-side individual with authority to approve budgets or payments. Typically a project manager, procurement officer, or business owner; they accept hourly budgets, approve invoices, and may be the contact for disputes and change orders.

Contractor/Professional

The person or firm providing services and billing hourly. This signer confirms hourly rates, tracks time, submits invoices, and warrants that services are performed to the standard specified in the agreement.

Core elements to include in every Hourly Fee Agreement

A professional Hourly Fee Agreement balances clarity for billing with enforceable terms that address rate, scope, timing, reimbursement, and modification procedures.

Scope of Work

Describe services in sufficient detail to avoid scope creep and enable accurate time allocation; attach exhibits for project specifics and deliverables.

Hourly Rate

Specify the exact dollar rate, basis for rate changes, and whether overtime or premium rates apply for weekends or holidays.

Billing Cycle

State invoice frequency (weekly, biweekly, monthly), due date, acceptable payment methods, and late-payment interest or fees.

Time Tracking

Define time-entry granularity (e.g., six-minute increments), required supporting detail, and the process for submitting time records.

Expense Reimbursement

List reimbursable expenses, required receipts or approvals, and any per-item or aggregate limits.

Termination

Explain notice requirements, final accounting of hours, payment obligations on termination, and confidentiality or IP return provisions.

Step-by-step: completing the agreement

Follow these sequential steps to prepare, sign, and archive an enforceable Hourly Fee Agreement.

01

1. Identify parties: Confirm legal entity names and authorized signers.
02

2. Define scope: Describe tasks, deliverables, and exclusions.
03

3. Set rates and billing: Specify hourly rates, increments, and invoice terms.
04

4. Sign and retain: Execute signatures and store an authenticated copy.

How to configure a digital signing workflow

Set up the online workflow so signers receive secure invites, fields validate input, and completed records are archived according to retention rules.

Field	Configuration
Template Name	Use consistent naming per client and matter
Signer Order	Specify sequential or parallel signing as required
Authentication	Choose email, SMS code, or stronger methods
Reminders	Set automatic reminders and expiration schedule

Where to send and how signatures are captured

Understanding routing and signature capture ensures the agreement is received and authenticated by all parties before services begin.

Prepare Document: Upload, apply required fields, and attach exhibits.
Send for Signature: Deliver by email link or shared signing URL.
Authenticate Signer: Use email verification, SMS code, or ID proofing.
Complete & Archive: Capture audit trail and store signed PDF.

Digital signing and format considerations

Choose a platform that supports required file types, signer authentication, and long-term storage controls.

Integrations: Salesforce, NetSuite, Microsoft 365
File formats: PDF, DOCX, HTML supported
Authentication: Email, SMS, or KBA options

Ensure the platform retains a tamper-evident audit trail and stores signed records to meet ESIGN/UETA retention expectations.

eSignature vendor comparison for executing Hourly Fee Agreements

Compare common plan attributes for electronic signature platforms. signNow appears first in the table for clarity and direct comparison.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies	Varies	Varies	Varies
Bulk Send	Yes	Yes	Yes	Yes	Varies
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Security and compliance considerations

Encryption: TLS 1.2/1.3 in transit

At-Rest: AES-256 encryption

Certifications: SOC 2 Type II available

Regulatory: ESIGN and UETA compliant

Healthcare: HIPAA support (BAA required)

Accessibility: WCAG 2.0 Level AA

Key legal and financial risks to avoid

Late Payment: Interest and collection costs

Incorrect Rate: Dispute or adjustment

Missing Signatures: Unenforceable claim risk

Backup Withholding: 24% withholding risk

I-9 Noncompliance: $281–$2,789 penalties

Fraudulent Billing: Civil and criminal exposure

Common preparation mistakes to avoid

Vague scope descriptions that omit exclusions or deliverables create billing disputes and enable claims of unauthorized work.
Failing to specify billing increments or minimum chargeable time leads to inconsistent invoices and client confusion.
Not documenting expense approvals or caps results in denied reimbursements and repeated reconciliations.
Using informal names or abbreviations instead of legal entity names can complicate collections and tax reporting processes.

Frequently asked questions about Hourly Fee Agreements

Answers to common questions on validity, amendment, signatures, notarization, and post-signature changes when using electronic processes.

Need help? Contact support

Are electronic signatures legally binding?
Yes. Electronic signatures are generally enforceable under the ESIGN Act (15 U.S.C. §7001) and state UETA statutes when the four-part validity test is met: intent, consent, attribution, and reliable record retention.
Can I change the hourly rate after signing?
A rate change requires written amendment signed by both parties; unilateral rate increases risk breach claims unless the agreement allows adjustments and lists the notice procedure.
Is notarization required for an Hourly Fee Agreement?
Not typically. Most hourly service contracts do not require notarization, but specific state or industry rules or client policies may request notarial acknowledgement or RON for added verification.
How do I correct a signed agreement?
Create a written amendment signed by all parties or execute a rescission and replacement. Do not alter the original signed file; maintain audit trails for any corrective action.
How should I store signed agreements?
Retain signed copies in read-only PDF with an audit trail, back up securely, and follow retention schedules such as IRS guidance (IRC §6501(a)) and industry-specific rules like HIPAA.
What if a signer disputes their signature?
Preserve the audit trail (timestamps, IP, authentication logs) and any identity-proofing records. Electronic evidence demonstrating intent and attribution supports enforceability under ESIGN and UETA.

Explore Templates

California Employment Form California Employment Termination Package California Employment Employee Personnel File Package Release Mortgage California Statutory Form California Renovation Contractors Package

be ready to get more

Join over 28 million airSlate SignNow users

Sign Now