On December 17, 2024, the National Highway Traffic Safety Administration (“NHTSA” or “Agency”) adopted a final rule to formalize its whistleblower program under the Motor Vehicle Safety Whistleblower Act (Whistleblower Act).[1] Under the final rule, which adopts the April 14, 2023[2] proposed rule without significant changes, whistleblowers who share original information related to violations of NHTSA’s regulations could receive an award between 10% and 30% of any civil penalties over $1 million paid by the violating entity.
To qualify for this bounty, the whistleblower must provide original information – information that is derived from independent knowledge or analysis that is not already known to the U.S. Department of Transportation (U.S. DOT) or NHTSA. The information cannot be exclusively derived from an allegation made in a judicial or administrative proceeding or other outside source (such as a government report or investigation, or a media report). Whistleblowers must also first report the information through internal channels, except in limited circumstances, such as for good cause shown.
Therefore, manufacturers should act now to ensure they have internal policies in place that, among other things, provide reporting processes that include clear protections against retaliation for whistleblower actions. Fostering a culture of vehicle safety throughout the manufacturing process further reduces the risk of civil penalties and bounties for whistleblowers.
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