A whistleblower program regarding motor vehicle safety defects has taken shape, with the National Highway Traffic Safety Administration formalizing the rules outlining its program.
The program pertains to individuals who have worked in the auto industry and who offer original information about vehicle flaws that are “likely to cause unreasonable risk of death or serious physical injury,” according to the final rule text. Specifically, eligible whistleblowers are current or former employees or contractors who worked for a vehicle manufacturer, part supplier, or dealership, the NHTSA said.
If the tip leads to a successful enforcement action, with collected monetary sanctions exceeding $1 million, the whistleblower could collect 10 percent to 30 percent of the sanction amount. Formal actions can include investigations, recalls, or civil penalty enforcement actions.
The whistleblower program, mandated by a 2015 law, has taken years to create. Even absent final rules, in 2021 the NHTSA made its first award of $24.3 million (30 percent) to a former Hyundai Motor engineer who reported a design problem that caused engines in Hyundai and Kia vehicles to stall and even ignite.
The U.S. government increasingly leans on whistleblowers to help protect the public, both in terms of safety and use of taxpayer dollars. We recently wrote about the plethora of federal whistleblower programs, which range in focus but — as Kate Scanlan, a Keller Grover founding attorney and experienced whistleblower lawyer said — unite on the theme of a “complex scheme to skirt a legal requirement with massive amounts of money at stake.”
These whistleblowers typically are eligible for rewards, as well as protections and confidentiality.
If you are an insider with unique information about activity that threatens public safety, skirts laws or defrauds the U.S. government, contact Keller Grover for a free and confidential consultation. Our experienced whistleblower attorneys can answer questions and work with you to develop prudent next steps. In addition to providing a public service, remember that whistleblowers who help expose fraud using established whistleblower programs may be eligible for an award.