Why are law firm invoice rejection rates rising?

Elite’s 2025 E-Billing Intelligence Report, covering roughly 400 law firms, found invoice rejection rates rose from 11% to 18% in a single year, a 64% increase. Corporate clients are using AI to review invoices line by line against outside counsel guidelines, so compliance errors that once passed a human reviewer are now caught consistently.

What did Scan Logic’s live audience say is the biggest billing pain point?

In October 2026, a live audience split the top answer: compliance and LEDES at 32%, and time entry at 32%. Pre-billing followed at 19%. Appeals and collections came last, at 16%. The complication the room described sits in the pre-bill and in LEDES compliance, before the client ever sees the invoice.

What should a law firm do before an invoice is submitted?

Treat the pre-bill as the control point. Check time entries and narratives against the client’s current outside counsel guidelines, and confirm the LEDES file will pass the rules the client’s system enforces, before the invoice leaves the firm.

The Billing Crisis Is Getting Worse. Rejection Rates Are Up 64%.

The billing crisis is getting worse. Rejection rates are up 64%.Invoice rejection rates rose from 11% to 18% in 2025. A live Scan Logic audience poll shows the complication is pre-billing and LEDES compliance, not the appeal.