The National Highway Traffic Safety Administration has finalized the rules of its whistleblower award program, fulfilling a nearly decade-old Congressional mandate. The final rules will reward whistleblowers who come forth with original tips that successfully enforce traffic and safety regulations, resulting in a fine of over $1 million. The individual will receive a monetary award of 10% to 30% of the imposed penalties.
Initially established by the Motor Vehicle Safety Whistleblower Act in 2015, the whistleblower award program will allow employees and contractors of vehicle manufacturers, parts suppliers, and dealerships to report critical information, such as potential safety defects. Before NHTSA finalized the program’s rules, it awarded a former Hyundai engineer $24.3 million in 2021. The whistleblower initially reported in 2016 that his employer failed to address a vehicular design flaw that caused engine seizing and increased fire risk.
After awarding the engineer, the organization explored the potential of an official program in 2023 and outlined the initial cash-for-tips program’s operations.
While the reception of the finalized program has been met with primarily positive feedback, many attorneys representing whistleblowers expressed concern surrounding the discretionary aspect of the award-determination process. While a whistleblower’s identity is legally protected by law, and the U.S. Department of Transportation and NHTSA can’t disclose the individual’s information, there’s still a window of opportunity for the whistleblower’s identity to be revealed if the situation isn’t handled with the utmost care.
The National Whistleblower Center, an advocacy group, noted that the finalized program contained some guidelines it had previously recommended to the U.S. Department of Transportation in 2023. However, NHTSA did pivot away from some of the more critical aspects of the organization’s recommendations, including enforcing stricter processes for submitting tips and narrowing award qualifiers.
NHTSA’s finalization of its whistleblower program is part of a broader shift towards cash-for-tips programs being implemented by more enforcement agencies. Its impact will enhance vehicle safety through increased transparency and enforcement.
