NHTSA Whistleblower Program
The National Highway Traffic Safety Administration (NHTSA) Whistleblower Program incentivizes industry insiders to confidentially report alleged violations of the National Traffic and Motor Vehicle Safety Act and Federal Motor Vehicle Safety Standards, providing significant rewards for tips that lead to sanctions against vehicle manufacturers and parts suppliers. Federal law also includes anti-retaliation protections for whistleblowers.
History of the Program
The NHTSA Whistleblower Program was established in 2015 by the Motor Vehicle Safety Whistleblower Act. While the agency is still in the process of formalizing rules for the Program, it is currently active. In 2021, NHTSA issued its first whistleblower reward, paying $24 million to a former safety engineer represented by Whistleblower Partners’ lawyers, whose information led to penalties of up to $210 million against car manufacturers Hyundai and Kia.
Elements of a NHTSA Whistleblower Claim
The NHTSA Whistleblower Program covers reports of violations of the National Traffic and Motor Vehicle Safety Act and requirements set out in the Federal Motor Vehicle Safety Standards. Reports can include possible safety defects for motor vehicles and equipment, as well as failures to timely and accurately report safety-related issues.
To qualify for an award under the Program, a whistleblower must be:
an employee or contractor of a motor vehicle manufacturer, part supplier, or dealership
who voluntarily provides the agency with original information
about a vehicle defect, non-compliance with federal law, or failure to make a required report
that is likely to cause unreasonable risk of death or serious injury
Whistleblowers have original information when their tip is based on independent knowledge or analysis, is not already known to NHTSA, and does not exclusively come from publicly available sources.
Whistleblowers who submit information that leads to an enforcement action that results in sanctions of over $1 million can be eligible for an award of 10 to 30 percent of the penalties.
NHTSA Whistleblower Process
Unlike more established whistleblower programs at agencies like the SEC, NHTSA has not yet established detailed procedures for submitting a whistleblower tip. In general, whistleblowers should submit written reports that include as much information and documentation as possible concerning the alleged misconduct.
Once a tip is received, the agency will decide whether to open or expand an investigation, and may contact the whistleblower to ask questions or gather evidence. Throughout this process, the Program generally requires the agency to keep the whistleblower’s identity confidential.
Federal law prohibits employers from retaliating against employees who blow the whistle. Whistleblowers who suffer retaliation have legal claims that are independent of any violations of federal safety law and regulations.
NHTSA Whistleblower Rewards
If a qualifying tip leads to an enforcement action resulting in over $1 million in monetary sanctions against a company, the whistleblower may be eligible for an award of 10 to 30 percent of that amount.Whistleblowers are not notified directly of their eligibility for an award, or automatically issued the funds. The CFTC instead posts notice of enforcement actions over $1 million, and whistleblowers must apply for an award within 90 calendar days.
Contact a Whistleblower Attorney
These descriptions of the NHTSA Whistleblower Program are general in nature and do not constitute legal advice. Regulation of vehicle manufacturers and parts suppliers is complex and ever-evolving. The attorneys at Whistleblower Partners understand the complicated, constantly changing legal landscape and are happy to discuss any potential matter further.
If you would like more information or would like to speak to an attorney at Whistleblower Partners, please contact us for a confidential consultation.