“Good faith” refers to one of the “discounts” that OSHA has in place to reduce a proposed penalty. If OSHA cites an employer for a violation, but the employer can show that they have a safety and health program in place, then OSHA might give up to a 25 % discount in the penalty. The citation is still issued, but the fine is lowered.
The key is having a program in place. An employer must show that they are trying to do the right thing and that this was just an isolated break down in their safety and health management system.