NHTSA Finalizes Whistleblower Program Rule

The National Highway Traffic Safety Administration (NHTSA) has finalized a rule formalizing its whistleblower program. This rule, which fulfills a mandate from the Motor Vehicle Safety Whistleblower Act under the Fixing America’s Surface Transportation (FAST) Act, is designed to strengthen existing whistleblower protections and create a more transparent system for uncovering safety issues in the auto industry.

At the heart of this new rule is the recognition of the crucial role whistleblowers play in identifying safety hazards that could otherwise go unnoticed. In an era where vehicle safety is paramount, NHTSA’s Deputy Administrator, Sophie Shulman, made it clear: “Whistleblowers shine a light on critical safety issues and play a vital role in safeguarding our nation’s vehicles and roads. Safety is NHTSA’s top priority, and the agency is committed to doing everything in its power to protect whistleblowers.”

The finalized rule follows an earlier proposal released in April 2023, which detailed the program’s definitions, application procedures, and the steps for whistleblowers to submit original information. After reviewing public comments, NHTSA moved forward with adopting the proposed rule largely unchanged, laying the groundwork for a whistleblower program that encourages greater transparency and accountability in the auto industry.

Opening the Door for More Whistleblowers

The new rule expands the pool of potential whistleblowers to include any current or former employee or contractor of a vehicle manufacturer, parts supplier, or dealership. It’s a broad invitation for those who may have valuable insights into safety issues, including potential vehicle defects, noncompliance with federal safety standards, or violations of the Vehicle Safety Act. Their contributions could lead to investigations, recalls, or even civil penalty enforcement actions.

To ensure that individuals know where to turn, NHTSA has set up a dedicated webpage with resources for potential whistleblowers, outlining how to report issues and highlighting the protections they’re entitled to under the law.

Incentives That Speak to the Heart of Compliance

Perhaps one of the most compelling aspects of the new rule is the introduction of a financial incentive for whistleblowers. If the information they provide leads to the successful resolution of an enforcement action, NHTSA may award them between 10% and 30% of the monetary sanctions collected, as long as those sanctions exceed $1 million. This move aims to ensure that those who come forward with critical safety information are not only protected but are also financially recognized for their courage in reporting issues that might otherwise remain hidden.

With the new rule in place, NHTSA is hoping to see an increase in the number of whistleblowers stepping forward to share vital safety-related information. For compliance professionals, this rule serves as an important reminder of the power of transparency and the value of individuals within the industry who are willing to speak up about safety issues. The whistleblower program not only protects the public but also helps ensure that manufacturers and others in the vehicle supply chain remain accountable for maintaining the highest safety standards.

Ultimately, this rule is about fostering an environment where safety is everyone’s responsibility. By empowering whistleblowers, NHTSA is reinforcing its commitment to protecting American roads, one report at a time. As this program continues to unfold, compliance professionals will play a vital role in guiding organizations to support whistleblowers, comply with the rule, and help build a culture of accountability that ultimately benefits everyone.

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