NHTSA Issues Final Rule for Auto Whistleblower Program

On December 12, 2024, the National Highway Traffic Safety Administration (NHTSA) published the final rule formalizing its whistleblower program, as required by the Motor Vehicle Safety Whistleblower Act. The final rule deviates little from the rule proposed by NHTSA in April 2023, which addressed definitions of key program terms, tip-filing requirements, award applications, how decisions are made on award applications, and the program’s scope.

NHTSA’s whistleblower program allows current and former employees and contractors of vehicle manufacturers, part suppliers, or dealerships to obtain awards for reporting vehicle safety issues, including auto defects, noncompliance with the Federal Motor Vehicle Safety Standards, and violations of the Vehicle Safety Act. Reports can be made anonymously through an attorney and may lead to investigations, recalls, or civil enforcement actions. Where a whistleblower’s original information leads to collected monetary sanctions of more than $1 million, they may qualify for a monetary award between 10% to 30% of the sanctions collected.

To date, NHTSA has made just one award—which was for $24 million and stemmed from a report concerning serious issues with Theta II engines in Hyundai and Kia vehicles. Hopefully more tips will come with the finalization of the program’s rules, as NHTSA whistleblowers could expose serious auto safety problems, improve our roadways, and potentially save lives.