Zoho Sign in the United States:
E-signature adoption and legality

Electronic signatures: An introduction

In the wake of digital transformation, sending electronic documents online has become a common practice. Often, these documents require signatures as proof of the agreement. This is achieved with the help of electronic signatures. They provide an efficient way to sign documents online, reducing paperwork and enabling more streamlined transactions.

In addition to easing the process, e-signatures help protect your documents with their enhanced security and authentication techniques. They outweigh handwritten signatures in various aspects, with security being the most significant. As a result, e-signatures are gaining popularity with businesses worldwide, helping them meet their objectives efficiently.

E-signatures for U.S. businesses

The use of electronic signatures accelerated in the U.S. market in the late 1990s. This necessitated the government to make e-signatures legally binding in the country. Adoption of e-signatures increased multifold for its sheer efficiency and security that came along with them. Zoho Sign, a digital signature solution, helps businesses integrate with various applications while ensuring compliance with the nation's standards revolving around e-signatures.

As opposed to physical signatures, electronic signatures have much to offer in terms of:

• Speed
• Productivity
• Authentication
• Security
• Remote access
• Improved user experience
• Cost-effectiveness

Popular fields of use

• HR
• Banking and Finance
• Technology
• Non-profit
• Education
• Healthcare

UETA

The Uniform Electronic Transactions Act, drafted in 1999 by the Uniform Law Commission, applies to Electronic Signatures used for transactions relating to business, commercial, and governmental affairs. UETA is a model law enacted by the U.S. federal government, and 49 states (New York being the only exception) have adopted UETA to date. UETA defines an Electronic Signature as "an electronic sound, symbol, or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record."

It operates on the following fundamental principles:

• No Electronic Record or Signature can be denied validity solely because it is electronic.
• An Electronic Record or Signature satisfies the law, just as well as a physical signature.

These best practices can be followed to stay compliant. Learn how Zoho Sign helps users achieve these goals.

• Clear intent:

  All parties involved must show clear indication of consent by either drawing, typing, or uploading their signature so that it is legible to read and labeled clearly. These options are available in Zoho Sign for users to imprint their signature with clarity and ease.

• Consent to do business electronically:

  Before signing a document, the e-signature laws require the parties involved to agree to do business electronically. Zoho Sign requires signers to accept this clause before proceeding to sign: "I confirm that I have read and understood the ‘Electronic Record and Signature Disclosure’ and consent to use electronic records and signatures.”

• An opt-out clause:

  A signer has the liberty to opt out of signing a document electronically. In this case, the signer has to be given precise directions on manual document signing. We meet this protocol by allowing signers to simply decline or skip signing a document.

• Signed copies:

  All signers should receive signed copies of the document as part of the workflow for approval. This is achieved by emailing the signed copy of the completed document to the signers.

• Record retention:

  The parties involved reserve the right to refer to the electronic signature records in the future. Zoho Sign allows users to download the signed copy.

These are some exceptions where the UETA does not apply:

• Wills
• Codicils
• Testamentary trust
• Letters of credit
• Documents concerning title
• Negotiable instruments (such as checks)

Subject to these exclusions, Electronic Signatures shall be used in transactions where the parties have agreed to conduct such transaction by electronic means. Consent between the parties is determined by context and the parties' conduct.

HIPAA

The Health Insurance Portability and Accountability Act (HIPAA), a U.S. federal law enacted in 2003, helps keep the data of patients private and secure. The U.S. Department of Health and Human Services gave its consent for an electronically signed contract/agreement to be legally recognized under a state or a federal law. However, HIPAA neither mandates nor restricts the use of Electronic Signatures in transactions involving personal healthcare information (PHI).

To bolster security in the healthcare industry, the following measures can be practiced:

• Before signing the patient form or any such document, it is crucial to conduct user authorization to prevent unauthorized users from accessing the documents with critical information.
• Non-repudiation is a major issue that surrounds E-Signatures. This can be easily tackled if appropriate audit trails are followed. With the necessary audit trails in place, no party can deny that they signed an agreement.
• Healthcare providers must comply with all applicable laws because E-Signatures are a great way to ascertain patient satisfaction and improve efficiency.

FERPA

The Family Education Rights and Privacy Act (FERPA) is a U.S. federal law enacted for students to protect their data records and privacy. A key aspect of FERPA-compliant release forms is the signature. Most educational institutions are resorting to Electronic Signatures because it does not require vast storage space and offers convenience in multiple aspects when compared to physical signatures.

Educational institutions covered under FERPA are required to obtain consent (with some exceptions) from the parent or student before disclosing a student's personally identifiable information from their records. This consent should be provided in the form of a signed and dated written consent as required under §99.30. FERPA allows signed and dated written consent forms to be signed using Electronic Signatures that are capable of:

• Identifying and authenticating the person providing the consent.
• Identifying approval from the person whose information is present in the consent form.

Zoho Sign focuses on the protection of educational records by using intensive authentication techniques like e-mail and SMS authentication, maintaining a detailed audit trail throughout the signing process, and employing encryption techniques that allow users to stay compliant with FERPA.

Conclusion

Zoho Sign renders robust compliance with the stringent e-signature laws in the United States, giving users a reliable platform for electronic signatures. Zoho Sign adheres with laws such as those discussed in this article, aiding businesses and individuals in ensuring the validity and enforceability of electronic documents in the U.S. With its simple interface, enhanced security features, and intensive audit trails, Zoho Sign can be your go-to solution for meeting the requirements of present-day transactions while adhering to legal standards and regulations.

Resources

• UETA
• ESIGN Act
• HIPAA
• Title 21 CFR Part 11
• FERPA