17 December 2024. Ensuring vehicle safety through the manufacturing and sales processes is a responsibility that cannot be overstated. Enter the Department of Transportation’s National Highway Safety Administration (NHTSA) Whistleblower Reward Program, a critical initiative designed to empower industry insiders to come forward with vital information that could save lives. Vehicle safety experts and employees in the automotive sector hold the keys to safer roads, and this program provides the financial incentives and protections needed to make speaking up a viable and effective option. NHTSA issued final rules for its whistleblower reward program last week.
What Is the NHTSA Whistleblower Reward Program?
The National Highway Traffic Safety Administration (NHTSA), under the Department of Transportation (DOT), administers a whistleblower program as part of the Motor Vehicle Safety Whistleblower Act, enacted under the 2015 Fixing America’s Surface Transportation (FAST) Act. This program aims to identify and resolve safety risks by incentivizing individuals within the automotive industry to report unreported vehicle defects, noncompliance with federal motor vehicle safety standards, or other violations of the Motor Vehicle Safety Act.
Eligible whistleblowers who voluntarily provide original information that leads to a successful resolution of a “covered action” can receive a monetary reward. The reward comes from monetary sanctions collected in penalties exceeding $1,000,000 and is intended to recognize and encourage whistleblowers.
This program’s overarching goal is to protect lives by using insider insights to mitigate risks that could pose unreasonable dangers to drivers, passengers, and pedestrians.
Why the NHTSA Whistleblower Program Matters
1. Enhances Automotive Safety
By providing a clear pathway for reporting defects and violations, the program ensures that critical safety risks are identified and resolved before accidents can occur. This proactive approach strengthens trust in the automotive industry.
2. Holds Manufacturers Accountable
When manufacturers fail to report defects or comply with federal safety standards, the whistleblower program adds another layer of accountability, ensuring legal and regulatory compliance across the sector.
3. Rewards Integrity
Insiders who prioritize integrity and safety over silence are rewarded for their contributions not just financially but also ethically, reinforcing the importance of personal and collective responsibility in the workplace.
4. Encourages Transparency
Transparency is critical in the automotive industry. The whistleblower program discourages secrecy and cultivates an environment where whistleblowing becomes a respected mechanism to improve safety for all.
Who Can Be a Whistleblower?
You may qualify as a whistleblower if you are an employee, contractor, or supplier within the automotive industry who possesses original information related to significant safety violations or unaddressed risks.
Examples of eligible reports include, but are not limited to:
- Undisclosed safety defects likely to cause accidents
- Noncompliance with Federal Motor Vehicle Safety Standards (FMVSS)
- Violations of notification or reporting requirements under 49 U.S.C Chapter 301 – Motor Vehicle Safety.
It’s important to note that whistleblowers must follow specific procedures to qualify for rewards. Failing to meet the requirements or deadlines outlined in the regulations could disqualify an individual from receiving an award, so contact an experienced whistleblower rewards attorney.
How Does the Reward System Work?
The reward for whistleblowers is tied to the outcome of “covered actions”—legal or regulatory actions resulting in monetary sanctions exceeding $1,000,000. Whistleblowers can receive up to 30% of the monetary sanctions collected. However, restitution funds directed to victims, or third parties are not part of the monetary sanctions used to calculate rewards.
Certain exceptions apply, and rewards will not be granted to individuals convicted of criminal violations related to the whistleblowing matter.
How to Submit a Whistleblower Report
If you believe you possess actionable information that qualifies under the NHTSA Whistleblower Program, contact an experienced whistleblower rewards attorney who is familiar with working with the Government.
If you work in the automotive industry, understanding this program could place you at the heart of improving automotive safety while earning a reward for speaking up.
If you would like to report vehicle safety fraud, you can contact attorneys at Tycko & Zavareei LLP. Eva Gunasekera and Renée Brooker were a part of the Volkswagen Monitorship Team overseeing Volkswagen’s compliance with its guilty plea under its agreement with the U.S. Department of Justice. Eva and Renée are also former officials of the United States Department of Justice and prosecuted whistleblower cases under the False Claims Act. Renée served as Assistant Director at the United States Department of Justice, the office that supervises False Claims Act cases in all 94 United States District Courts. Eva was the Senior Counsel for Health Care Fraud. Eva and Renée now represent whistleblowers. For a free consultation, you can contact Renée at [email protected] (tel.: 202-417-3664) or contact Eva Gunasekera at [email protected]. You can also go to Tycko & Zavareei LLP’s website for whistleblowers to learn more at www.fraudfighters.net.