NHTSA Finalizes Motor Vehicle Safety Whistleblower Program

New Whistleblower Protections and Monetary Awards Under the Motor Vehicle Safety Whistleblower Act

The National Highway Traffic Safety Administration (NHTSA) has adopted a final rule under the Motor Vehicle Safety Whistleblower Act, formalizing the process for whistleblowers to report violations of motor vehicle safety regulations while being eligible for monetary awards. Effective December 17, 2024, the rule provides financial incentives for whistleblowers who disclose original information leading to civil penalties against motor vehicle manufacturers, parts suppliers, or dealerships found in violation of safety laws.

Under this new rule, whistleblowers can receive between 10% and 30% of any civil penalties exceeding $1 million paid by the offending party. To qualify for these monetary rewards, the whistleblower must provide information that is not already known to NHTSA or the U.S. Department of Transportation. The information must be derived from independent knowledge or analysis rather than judicial proceedings, media reports, or government investigations unless the whistleblower was the original source.

Criteria for Whistleblower Eligibility

The NHTSA’s final rule outlines specific criteria a whistleblower must meet to be eligible for an award. The whistleblower must submit “original information,” defined as data or analysis derived independently and not publicly available. The whistleblower must also be the original source of the information or provide insight not previously available to the agency.

The law clarifies that whistleblowers do not need firsthand knowledge of the violations. Even if the information is obtained from third-party reports, it can qualify as long as it meets the originality standard. However, information derived from the following is not eligible for whistleblower awards:

• Attorney-client privileged communications
• Attorney work product
• Information obtained in violation of federal or state criminal law

Whistleblowers must generally report the violation through internal channels within the company before seeking an award. However, exceptions exist when the whistleblower reasonably believes internal reporting would result in retaliation or if the information was already known to the company.

Whistleblower Reporting Process and Deadlines

To seek an award under the finalized rule, a whistleblower must follow specific reporting steps. The whistleblower must submit a completed WB-AWARD form to NHTSA within 90 calendar days from the date the agency issues a Notice of Covered Action. This notice informs the public of the intent to assess civil penalties against the violating entity.

The submission must demonstrate that the whistleblower provided original information that substantially contributed to the enforcement action. If the agency confirms the whistleblower’s role in exposing the violation, the whistleblower becomes eligible for a financial award.

How the Rule Aims to Prevent Harm

The whistleblower program is designed to protect public safety by identifying and addressing vehicle safety violations. Violations of NHTSA safety regulations can lead to serious injuries or deaths caused by vehicle defects or regulatory non-compliance. Safety violations can include faulty brakes, steering failures, tire blowouts, or malfunctioning airbags—all of which can contribute to life-threatening accidents.

When manufacturers neglect safety standards, vehicles with defects can enter the market, leading to crashes and harm to consumers. These dangerous situations often involve preventable mechanical issues that the manufacturer failed to disclose or correct. Whistleblowers who expose these safety hazards can play a critical role in preventing further harm by bringing violations to light before they cause widespread injuries.

The new whistleblower protections also reduce the risk of companies suppressing safety concerns internally. By encouraging anonymous reporting and offering financial incentives, NHTSA hopes to empower individuals to disclose violations without fear of retaliation.

Legal Rights for Victims of Vehicle Safety Violations

Individuals harmed by vehicle safety violations may be entitled to file product liability lawsuits against manufacturers or distributors responsible for defective vehicles. Product liability laws allow victims to hold companies accountable when unsafe products result in injury, death, or property damage.

A product liability lawsuit can be filed if a vehicle’s safety defect directly caused the harm. Examples include brake system failures, engine fires, or steering malfunctions linked to manufacturer negligence. To succeed in a claim, the injured party must demonstrate:

• The product was defective or unreasonably dangerous.
• The defect directly caused the accident or injury.
• The vehicle was used as intended or in a reasonably foreseeable manner.

Victims harmed by vehicle safety violations can pursue compensation for medical expenses, lost income, pain and suffering, and property damage through a lawsuit.

Steps in the Product Liability Lawsuit Process

Filing a product liability lawsuit requires careful attention to legal procedures. The process typically includes:

1. Identifying the Defect: The victim must prove the defect directly caused their injuries. This involves collecting repair records, safety recall notices, and expert evaluations.
2. Filing the Complaint: A formal legal complaint is submitted to the court, detailing the allegations against the manufacturer and the damages sought.
3. Evidence Collection: Both sides engage in discovery, exchanging evidence, including accident reports, engineering records, and whistleblower testimony.
4. Negotiation and Settlement: Many cases resolve through negotiated settlements. If the manufacturer offers fair compensation, the case may end without trial.
5. Trial: If no settlement is reached, the case goes to trial, where a judge or jury determines liability and damages.

Why Victims Need an Attorney for Product Liability Cases

A skilled product liability attorney is crucial for building a strong case against large corporations with extensive legal resources. Attorneys help investigate claims, gather technical evidence, and present a compelling argument for compensation. They also ensure the lawsuit complies with procedural deadlines and legal standards.

Manufacturers often have significant financial and legal resources to challenge liability claims, making it difficult for victims to succeed without representation. An attorney can level the playing field by advocating for full compensation and accountability.

Potential Damages in Product Liability Lawsuits

Victims of vehicle safety violations may recover several types of damages in a product liability claim, including:

• Medical Costs: Coverage for hospital stays, surgeries, and ongoing care.
• Lost Wages: Compensation for missed work due to injury recovery.
• Pain and Suffering: Monetary compensation for physical pain and emotional distress.
• Property Damage: Reimbursement for vehicle repairs or replacements.
• Punitive Damages: Awarded in cases of extreme negligence to punish the defendant and deter future misconduct.

If you or a loved one suffered harm due to a vehicle defect or manufacturer negligence, you may have a valid product liability claim. The national product injury law firm Parker Waichman LLP is committed to fighting for victims harmed by dangerous products.

Contact Parker Waichman LLP for a Free Case Review

Contact us by calling 1-800-YOUR-LAWYER (1-800-968-7529) today for a free, no-obligation consultation. Let Parker Waichman LLP help you pursue the justice and compensation you deserve. Regardless of your location or where your injury occurred, our nationwide product injury law firm is ready to assist you.