NHTSA Issues Final Rule Authorizing Whistleblowers

Any current or former employee or contractor of a vehicle manufacturer, part supplier or dealership may be a whistleblower, NHTSA said. (wildpixel/Getty Images)

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The National Highway Traffic Safety Administration has issued a final rule that authorizes the secretary of transportation to pay an award to whistleblowers who voluntarily provide original information relating to any motor vehicle defect that is likely to cause unreasonable risk of death or serious physical injury.

“Whistleblowers shine a light on critical safety issues and play a vital role in safeguarding our nation’s vehicles and roads,” NHTSA Deputy Administrator Sophie Shulman said in a statement. “Safety is NHTSA’s top priority, and the agency is committed to doing everything in its power to protect whistleblowers.”

Any current or former employee or contractor of a vehicle manufacturer, part supplier or dealership may be a whistleblower, NHTSA said.

“NHTSA welcomes information from whistleblowers on a wide variety of topics, including potential vehicle safety defects, noncompliance with the Federal Motor Vehicle Safety Standards and violations of the Vehicle Safety Act,” the agency said in a Dec. 17 Federal Register post. “That information can lead to formal actions, including investigations, recalls or a civil penalty enforcement action.”

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Shulman 

NHTSA has a webpage for potential whistleblowers to learn more about the program and the protections available to them, the announcement said.

The rule provides that NHTSA may pay a monetary award to a whistleblower who provides original information that leads to the successful resolution of an enforcement action for violations of law. The amount of that award is between 10% and 30% of collected monetary sanctions over $1 million.

“With some limited exceptions, generally, the U.S. Department of Transportation (including NHTSA) is not permitted to disclose any information which could reasonably be expected to reveal the identity of the whistleblower,” the agency said. “In some cases, we may request that a whistleblower provide prior written consent for information to be disclosed, but this is entirely voluntary. If a ‘waiver’ is filled out by the whistleblower, NHTSA still takes reasonable measures not to reveal the identity of a whistleblower.”

There were only 14 comments filed last year in response to NHTSA’s proposed regulation.

In June 2013 comments, MEMA, the vehicle suppliers association, urged NHTSA to require the whistleblower to have direct, firsthand knowledge of potential violations and require the whistleblower to report information to manufacturers prior to alerting NHTSA.

Ford Motor Co. in June 2023 said it is “committed to the safety of its products and has an extensive, long-standing program devoted to complying with NHTSA’s Motor Vehicle Safety Standards, identifying and addressing potential defects, and ensuring compliance with notification, reporting and other requirements of NHTSA safety regulations. Ford also strongly encourages employees to communicate freely and without fear of retaliation, particularly with respect to potential safety and other regulatory and legal compliance issues.”

Hyundai Motor America Inc. said in June 2023 it “continues to support a NHTSA whistleblower program that enhances safety and commends NHTSA for proposing a draft rule that substantially reflects the plain text and legislative intent of the Whistleblower Act.

“The company is appreciative that NHTSA considered its views in drafting the proposed rule, including by prescribing well-developed processes, notices and applications for potential whistleblower awards and setting a 90-day deadline for applications following a Notice of Covered Action.”