Compliance

Good Faith Belief

An honest and reasonable belief regarding the projected salary or hourly pay for a position.

Definition

The 'Good Faith Belief' standard applies to the employer's obligation to disclose the minimum and maximum projected salary or hourly pay in all job listings and position descriptions. This means that the employer must genuinely and reasonably believe, at the time of posting, that the disclosed range reflects the compensation they would pay for the advertised opportunity. This is not merely a formality but requires employers to conduct a diligent assessment of the position's value, market rates, and internal pay structures. The 'good faith' requirement aims to prevent employers from posting arbitrarily wide or misleading salary ranges that do not accurately represent the actual compensation for the role, thereby ensuring meaningful transparency for job applicants.

Good Faith Belief - AI Regulation Glossary | RewardsET