Establishing secure connection…Loading editor…Preparing document…

Legal Timekeeping Agreement

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

LEGAL TIMEKEEPING AGREEMENT

This Legal Timekeeping Agreement ("Agreement") is entered into as of by and between Client Name: , located at , and Service Provider Name: , located at .

RECITALS

WHEREAS, Client retains Provider to perform legal services, the billing for which shall be supported by contemporaneous and accurate time entries; and

WHEREAS, the Parties desire to establish uniform standards for timekeeping, entry format, submission deadlines, rounding rules, and verification to ensure integrity and efficiency of invoicing and internal controls; and

WHEREAS, Provider maintains electronic timekeeping systems and procedures that, if followed, will allow Client to rely upon time entries for billing and internal audit purposes.

NOW, THEREFORE, in consideration of the mutual covenants set forth herein, the Parties agree as follows:

1. DEFINITIONS

1.1 "Time Entry" means an electronic or written record of hours worked prepared contemporaneously by Provider's personnel and containing the date, start and end times (or increment), task description, and matter or project identifier.

1.2 "Designated System" means the timekeeping application or platform specified by the Parties for the entry, storage, and transmission of Time Entries.

2. TIMEKEEPING SYSTEM AND FORMAT

2.1 Provider shall use the following Designated System: to record all Time Entries relating to Client matters.

2.2 Each Time Entry shall, at a minimum, include: (a) Date of service; (b) Start time and end time or number of hours; (c) Direct description of services performed sufficient to identify tasks and activities; (d) Matter identifier or file number; (e) Timekeeper initials or name; and (f) Any necessary confidentiality classification.

3. INCREMENTS, ROUNDING, AND MINIMUMS

3.1 Time shall be recorded in minimum increments of hours.

3.2 Rounding shall occur as follows (choose one or describe): . Provider shall apply rounding consistently and shall not round in a manner that materially increases billed time.

4. TIMELINESS; SUBMISSION

4.1 Provider shall enter Time Entries contemporaneously with the performance of services and shall submit all Time Entries for a given billing period no later than days after the end of the period.

4.2 If Time Entries are submitted late, Provider shall include a written explanation for any entry recorded more than days after performance, and Client may require additional verification or disallowance in accordance with Section 6.

5. ADJUSTMENTS, CORRECTIONS, AND CERTIFICATION

5.1 Provider shall maintain an audit trail for each Time Entry reflecting creation, edits, and the identity of the editor. Corrections shall not delete original records but shall append correcting entries and an explanation.

5.2 Prior to submission of invoices, the responsible timekeeper shall certify that the Time Entries are true, accurate, and performed for the stated matter by selecting the certification option in the Designated System or by providing a signed certification upon Client request.

6. AUDIT AND VERIFICATION RIGHTS

6.1 Client shall have the right to audit Provider's Time Entries, supporting documentation, and audit logs relating to services billed to Client for a period of years following invoice date.

6.2 Audits shall be conducted at Client's expense unless material noncompliance is discovered, in which case Provider shall reimburse reasonable audit costs and correct the noncompliance. Provider shall cooperate with reasonable verification procedures.

7. CONFIDENTIALITY AND DATA SECURITY

7.1 Timekeeping records and related metadata constitute Confidential Information of the Parties. Provider agrees to protect such information using administrative, technical, and physical safeguards consistent with industry standards and not to disclose it except as required by law or with Client's prior written consent.

8. FEES, BILLING, AND RECORD RETENTION

8.1 This Agreement governs timekeeping practices only and does not modify the Parties' fee arrangements unless expressly stated in writing. Provider shall retain timekeeping records and supporting documentation for the period specified in Section 6.1.

9. NOTICES

All notices under this Agreement shall be in writing and delivered to the addresses set forth below by hand, certified mail, or overnight courier.

10. AMENDMENT; WAIVER

10.1 This Agreement may be amended only by a written instrument executed by authorized representatives of both Parties.

10.2 No failure or delay by a Party in exercising any right under this Agreement shall operate as a waiver of that right, and no single or partial exercise of any right shall preclude further exercise.

11. GOVERNING LAW; SEVERABILITY; ENTIRE AGREEMENT

11.1 Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the State of , without regard to its conflict of laws principles.

11.2 Severability: If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall continue in full force and effect.

11.3 Entire Agreement: This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior agreements and understandings, whether written or oral, concerning timekeeping practices for Client matters.

12. MISCELLANEOUS

12.1 Counterparts: This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument.

12.2 Authority: Each signatory represents and warrants that he or she is duly authorized to execute this Agreement on behalf of the Party for which the signatory acts.

EXECUTION

Client:

By:

Date:

Service Provider:

By:

Date:

Enter text✕

What a Legal Timekeeping Agreement Does

A Legal Timekeeping Agreement is a written record that specifies how attorneys, paralegals, and staff will log time, apply billing rates, and report work on client matters. It formalizes time entry formats, rounding rules, billable versus non‑billable classifications, client/matter codes, and approval workflows. The agreement supports accurate client invoices, trust accounting and auditability, internal productivity reporting, and compliance with retainer terms and professional responsibility rules. When executed electronically, the agreement should meet ESIGN (15 U.S.C. ch. 96) and applicable state UETA or ESRA requirements to ensure enforceability across jurisdictions.

Why using a written timekeeping agreement matters

A clear Legal Timekeeping Agreement reduces billing disputes, establishes consistent entry standards, and preserves an audit trail for client invoices and ethics reviews. It helps firms meet retainer promises and supports defensible records in audits, malpractice claims, and fee reviews while enabling electronic execution under ESIGN and state e‑signature laws.

Why using a written timekeeping agreement matters

Who typically completes a Legal Timekeeping Agreement

The agreement is used by law firms and legal departments to align billing practices, assign responsibility, and manage client expectations.

  • Law firms and partners: Establish firm-wide rates, rounding, and approval workflows to reduce billing variance and disputes.
  • In-house legal teams: Set matter codes and authorization limits for external billers and outside counsel engagement.
  • Practice managers and billing staff: Enforce entry formats, reconciliation, and trust-account handling for accurate invoicing.

It is also used by vendors, consultants, and temporary attorneys who must follow the client or firm’s timekeeping standards.

Core elements to include in the agreement

A comprehensive Legal Timekeeping Agreement organizes policies so timekeepers and approvers follow the same procedures; include measurable fields and workflow rules to avoid ambiguity.

Time capture

Define increments, rounding rules (e.g., six-minute/0.1 hour), and required work descriptions to ensure consistent entries.

Rate schedules

List hourly rates by role, effective dates, and how overtime or blended rates are applied for client matters.

Client/matter codes

Specify accepted matter identifiers and subcodes so billing systems map entries correctly to client ledgers.

Approval workflow

Identify approvers, escalation steps, and time windows for review prior to invoice generation.

Billable categories

Differentiate billable work, non‑billable time, disbursements, and capped or alternative‑fee arrangements.

Auditability

Require audit fields (user ID, timestamp, edit history) to support disputes and professional regulation inquiries.

Step-by-step process to finalize the agreement

Follow these sequential steps to draft, approve, and execute the Legal Timekeeping Agreement so it is enforceable and operational.

  • 01
    Draft: Prepare terms, rounding rules, rates and necessary fields for the firm and client.
  • 02
    Internal review: Have billing, compliance, and practice leads approve the draft before client proposal.
  • 03
    Client review: Send for client review and negotiate any matter‑specific exceptions.
  • 04
    Execution: Obtain signatures (electronic or wet) and confirm retention and distribution procedures.

Typical digital workflow settings to configure

When you implement the agreement in an eSignature or practice‑management platform, configure sender, authentication, and retention controls.

Field Configuration
Signer order Sequential or parallel signing order depending on approval hierarchy.
Authentication Email link or SMS code; use stronger methods for sensitive matters.
Conditional fields Show or hide fields based on role, matter type, or client preferences.
Retention settings Set automatic archiving and export schedules for compliance.

Platform and integration considerations

Choose a platform that supports secure signatures, audit trails, and common integrations to minimize manual handling.

  • Integrations: Salesforce, NetSuite, Microsoft 365, Google Workspace
  • Formats: PDF, DOCX, HTML, Excel
  • Authentication: Email, SMS, KBA, SSO

Ensure the chosen solution can export signed records, audit logs, and attachments in standard formats to meet retention and discovery needs.

How electronic execution typically works

Electronic workflows follow predictable steps; configure each to maintain legal validity and a clear audit trail.

  • Upload: Upload the agreement and place required signature and data fields.
  • Add signers: Enter signer emails and set the signing order or allow a shared link.
  • Authenticate: Verify signer identity using chosen method (email, SMS, KBA).
  • Complete: Signed copies and an audit trail are generated and stored.

Key dates and timing expectations

Establish clear timing for entry, review, invoice generation, and dispute windows to avoid processing delays.

Effective date:

Date the agreement becomes binding; use MM/DD/YYYY format.

Billing cycle:

Specify daily, weekly or monthly cutoffs for invoice generation.

Client review period:

Set the number of days clients have to review time entries before invoicing.

Dispute window:

Define how long a client may challenge time entries after invoice issuance.

Editing deadline:

Set a cutoff for edits before entries become final for billing.

Milestones from draft to final invoice

Track stages from drafting to invoice posting so each milestone triggers assigned actions and reviews.

01

Drafting

Create the agreement and set fields, rates, and rounding rules.

02

Internal approval

Billing and compliance sign off to confirm internal controls.

03

Client signature

Client or authorized representative executes the agreement electronically or on paper.

04

Invoice posting

Lock time entries, generate the invoice, and deliver per the agreement.

Security and compliance controls to require

Encryption: TLS 1.2/1.3 in transit; AES‑256 at rest
Audit trail: Immutable timestamps, IP, and action logs
Certifications: SOC 2 Type II, ISO 27001
Healthcare: HIPAA BAA required for PHI
FDA compliance: 21 CFR Part 11 support where needed
Privacy: CCPA and GDPR alignment available

Common pitfalls to avoid when preparing the agreement

  • Using inconsistent time formats or rounding rules that cause calculation errors and billing disputes.
  • Failing to define approval limits or escalation, resulting in unapproved billings and accounting mismatches.
  • Omitting client/matter codes or using nonstandard codes that misroute invoices and impede reconciliation.
  • Not documenting changes or late adjustments, leaving the firm exposed during audits and client challenges.

Consequences of errors or missing provisions

Billing disputes: Delayed payments and client dissatisfaction
Fee forfeiture: Potential requirement to refund or waive charges
Ethics risk: Professional responsibility inquiries and sanctions
Audit failures: Costly remediation and discovery exposure
Data breaches: Regulatory fines and reputational harm
Invalid execution: Unenforceable terms if signature requirements are unmet

How common eSignature vendors compare for timekeeping agreements

Basic pricing and capability differences can affect cost and compliance; signNow is listed first for direct comparison among commonly used vendors.

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 No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Real-world examples of adoption and benefits

These brief examples show how organizations implemented standardized timekeeping agreements to improve consistency and turnaround.

Optica Ventures — Brian Fitzgibbons

Optica standardized digital signing across clients

  • The interface simplified execution for staff and external parties
  • "The interface is simple and easy-to-use for our team; more importantly, it is just as easy for our customers."

Martin Properties — Tim Martin

Martin Properties moved to online agreements to close deals remotely

  • Electronic records reduced delay and paper handling
  • "I can process and execute all of these documents online with 100% compliance and built-in security."

Practical tips for accurate, efficient timekeeping

Adopt these best practices to reduce disputes, improve invoice quality, and maintain defensible records.

Standardize formats
Use a single date/time format and agreed time increment across the firm to minimize calculation and import errors between systems.
Require descriptive entries
Insist on concise, specific descriptions of work performed so clients and auditors can evaluate charges without follow‑up.
Enforce approval gates
Route entries to supervisors before invoicing and record approvals to create a clear audit trail for disputes.
Document changes
Log edits with reason codes and retain original entries so adjustments remain traceable during reviews.

Frequently asked questions about Legal Timekeeping Agreements

Answers to common questions about enforceability, edits, signatures, retention, and disputes when using timekeeping agreements.


Need help? Contact support

be ready to get more
Join over 28 million airSlate SignNow users