On November 9, 2021, the National Highway Traffic Safety Administration (NHTSA) issued its first-ever whistleblower bounty to a former Hyundai engineer. In the wake of this payout, plaintiff, and whistleblower law firms are actively targeting employees of automotive companies up and down the supply chain given the lottery-like awards that are possible under the Motor Vehicle Safety Whistleblower Act (MVSWA). While the MVSWA was passed by Congress in 2015, the rulemaking process is still underway, with an expected publication date in early 2022.
Notwithstanding the lack of promulgated rules, and as evidenced by this recent payout, automotive companies must take heed of the MVSWA and prepare for an increase in whistleblower complaints.
In this advisory, Varnum’s Automotive and Investigations attorneys outline actions companies under NHTSA’s jurisdiction should take to ensure that their compliance programs and related policies and procedures are robust in the wake of this emergent risk.
The MVSWA, passed by Congress in 2015, established a program under which NHTSA may compensate whistleblowers who are connected to the automobile industry with significant monetary awards if they report motor vehicle safety issues, such as potential vehicle safety defects. The whistleblower award program is not limited to employees of or contractors for original equipment vehicle manufacturers; it also applies to any employee or contractor of a part supplier or...
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