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How to Get Rewarded for Reporting Auto Safety Issues

Do you work for an automaker, parts supplier, or car dealership that is violating safety laws?
Have your concerns been ignored — or even punished?
Do you want to the government to step in before someone gets hurt?
Would you blow the whistle, if you could stay anonymous?

The law protects auto safety whistleblowers. And you may get a sizable reward for your honesty.

Since 2015, the National Highway Traffic Safety Administration (NHTSA) has been authorized to pay rewards to whistleblowers who report violations of vehicle safety. The identity of whistleblowers can be kept secret — and retaliation is forbidden against auto-industry employees who stand up for public safety.

The NHTSA's whistleblower program isn't well known, and some rules have yet to be locked down. Still, more than $24 million has already been paid out in rewards, and strong anti-retaliation provisions are fully in place. If you know of violations that are endangering the public, now is the time to speak up: The law is on your side.

The Employment Law Group® law firm is experienced in representing employees who blow the whistle on safety violations. Our attorneys have represented engineers, project managers, executives, salespeople, accountants, and other employees in their whistleblower claims. We have helped workers to get their jobs back after retaliation, and we have sued many vehicle manufacturers and auto dealers.

What’s more, while the NHTSA has been sluggish in implementing its whistleblower program, it also has proved that it can take tips seriously. In 2021, for example, it recovered $81 million from Hyundai and Kia based on a whistleblower’s information about flawed handling of engine defects — and it paid 30 percent of that amount to the informant.

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The NHTSA gets its authority to reward auto safety whistleblowers from the Motor Vehicle Safety Whistleblower Act, which was part of the broader FAST (Fixing America’s Surface Transportation) Act that President Obama signed into law in December 2015. FAST updated the National Traffic and Motor Vehicle Safety Act, the 1966 law that established the NHTSA and began setting vehicle safety standards at the federal level.

At its heart, the Motor Vehicle Safety Whistleblower Act provides an incentive for whistleblowers to bring tips to the federal government. For tips that lead to the recovery of more than $1 million, the NHTSA can give an award of 10 to 30 percent to the person who offered the key information.

The act also protects auto-industry employees from being punished for reporting safety violations. This anti-retaliation provision is enforced through the Occupational Safety and Health Administration’s (OSHA’s) whistleblower protection program, and generally requires employers to reverse any harm they caused to an employee — whether through reinstatement after firing, payment of damages, payment of attorney fees, or the like.

Depending on the details, other laws may also apply.

As with all legal claims, deadlines are crucial. We're still awaiting final rules from the NHTSA on reporting safety issues for a reward, so deadlines in that area remain murky. When it comes to saving lives, however, sooner is obviously better. For retaliation cases, meanwhile, the deadline for filing a complaint at OSHA is 180 days after you are punished.

Frequently Asked Questions

Who can be an auto safety whistleblower?

Any employee or contractor of a motor vehicle manufacturer, part supplier, or dealership.

What counts as a safety violation under the NHTSA whistleblower program?

There are two main buckets of offenses:

Noncompliance with federal safety standards, including issues related to brake systems, tires, crash protection, seat belts, fuel systems, vehicle classification, fuel economy standards, and lots more; and
Violations of the National Traffic and Motor Vehicle Safety Act, including untimely recalls, inaccurate reporting, failure to report incidents, and vehicle safety defects.

If you’re in doubt about whether a specific issue is covered by the whistleblower program, it’s best to consult an experienced attorney.

Do I need to report the issue internally before I provide a tip to the NHTSA?

No, the program doesn’t currently require internal reporting.

How can I send a tip to the NHTSA so that I’m sure to be eligible for a reward?

Even after almost a decade, there is still no fixed procedure at the time of writing. The NHTSA says it’s OK just to send them an email or to call them, but our law firm believes that you should take extra steps to safeguard any possible claim for an award. It’s best to ask an experienced whistleblower attorney for advice that’s specific to your situation.

Speaking of: Do I need an attorney to help me submit my tip to the NHTSA?

It’s not required, but we believe it could help your chances. However, be aware that a whistleblower law firm will likely require a share of any reward you receive. Is such a trade-off worth it? Only you can judge this, but it likely depends on the law firm’s experience and skill in whistleblowing matters.

How much is the NHTSA reward? Is there a cap?

If the NHTSA issues a tip-based enforcement action that results in more than $1 million in monetary sanctions — which is a big “if” — the tipster may be eligible to receive an reward that ranges from 10 to 30 percent of the total amount of money collected. As a practical matter, that means that the lowest whistleblower award (apart from zero) would be $100,000. There is no upper limit, and past non-whistleblower-based enforcement actions have resulted in payments of more than $1 billion. A reward could theoretically be in the hundreds of millions.

How many NHTSA whistleblowers have received rewards?

At the time of writing, just one. In 2021, NHTSA issued a $24.3 million reward — the maximum allowed under the program — to a whistleblower who submitted information about untimely recalls and inaccurate reporting of possible defects in more than 1.6 million Hyundai and Kia vehicles. In at least one other case, however, a parts manufacturer agreed to a seven-figure payout to whistleblowers who drew the NHTSA’s attention to dangerous flaws.

When will the NHTSA’s whistleblower rewards program be formalized?

The program is active right now; it just doesn’t have formal regulations. In 2023, long past any deadline to do so, the NHTSA finally published its proposed rule and solicited comments from the public. The next step should be a “final rule,” but we don’t know when that will happen.

The NHTSA has insisted that the lack of a final rule won’t stop it from taking tips and making awards — and its 2021 award proves that, to a degree. But we need real regulations to protect the rights of whistleblowers under this program. In our firm’s view the proposed rule isn’t ideal but, at this point, is better than nothing.

If I become a whistleblower, will the NHTSA keep my identity confidential?

It should. The NHTSA is part of the U.S. Department of Transportation, which generally isn’t allowed to reveal a whistleblower’s identity — nor to disclose any data that would lead to such a revelation.

Will the NHTSA protect me from retaliation by my employer?

If you blow the whistle on an auto safety issue — including internally within your company — it is illegal for your employer to punish you for doing so. This protection is administered via OSHA, as mentioned above. And unlike the NHTSA’s rewards program, OSHA’s procedures are fully in place. The OSHA process can be cumbersome, but it provides a clear path toward justice.