The rule holds that an employer's reason is not pretextual merely because it was factually wrong, provided the employer honestly believed it after a reasonably informed decision process.
Circuits differ on how much investigation is required.
Alternative Names:
Honest Belief Doctrine|Good Faith Belief Rule
Why it Matters?
The reasonably informed requirement is where the rule's protection is won or lost, since an employer that terminated on an unverified allegation without interviewing the employee may not have formed an honest belief at all. Circuits differ on the investigation depth required, with some demanding particularized facts and others accepting reliance on a supervisor's report. Documenting the inquiry performed is what establishes the belief's foundation.
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Frequently asked questions
What does the rule require?
What defeats the protection?
