In December 2024, the National Highway Traffic Safety Administration announced the final rule in its whistleblower program. The rule reaffirms the importance of whistleblowers in vehicle safety and satisfies a mandate in the Motor Vehicle Safety Whistleblower Act (“the Act”) that NHTSA establish regulations detailing the Act’s requirements. The rule adds to NHTSA’s preexisting whistleblower program.

In April 2023, NHTSA released a Notice of Proposed Rulemaking. According to this publication, it “proposed definitions of whistleblower program terms, outlined procedures for submitting original information to NHTSA and applying for awards, discussed NHTSA’s procedures for making decisions on award applications, and outlined the scope of the program.” After considering public feedback, NHTSA finalized and implemented the proposed rule with minimal changes.

In announcing the final rule, NHTSA Deputy Administrator Sophie Shulman emphasized the agency’s commitment to whistleblowers, stating: “Safety is NHTSA’s top priority, and the agency is committed to doing everything in its power to protect whistleblowers. Whistleblowers shine a light on critical safety issues and play a vital role in safeguarding our nation’s vehicles.”

Constantine Cannon represented the whistleblower in NHTSA’s first-ever award, securing $24.3 million in 2021 for former Hyundai safety engineer Kim Gwang-ho. Mr. Kim reported to NHTSA in 2016 that Hyundai was failing to address a design flaw linked to its Theta II engines, which were prone to seizing up and even catching fire. NHTSA found that Hyundai and its Kia subsidiary had delayed recalling the vehicles, and that the Korean automaker had provided inaccurate information about the problems.

NHTSA encourages whistleblowers to come forward with any information on subjects such as violations of the Vehicle Safety Act, noncompliance with the Federal Motor Vehicle Safety Standards, and possible vehicle safety defects. This info can result in recalls, investigations, or civil penalty enforcement action. Potential whistleblowers are entitled to awards of between 10 and 30 percent of any amounts over $1,000,000 the government recovers on information a whistleblower provides. Whistleblowers are also afforded protection from retaliation.

If you would like to learn more about the Motor Vehicle Safety Whistleblower Act, what it means to be a whistleblower, or have a possible case, please contact us. We will connect you with an experienced member of our whistleblower team.

Read NHTSA Announces Final Rule in Motor Vehicle Safety Whistleblower Act at constantinecannon.com