Motor Vehicle Safety Whistleblower Act: Reporting Defects
The Motor Vehicle Safety Whistleblower Act allows employees and contractors of motor vehicle manufacturers, part suppliers, and dealerships to receive up to 30 percent of monetary sanctions exceeding 1 million dollars for reporting safety defects, noncompliance, or violations of reporting requirements.
Why the statute exists
Congress enacted it in 2015 after a series of defect cases in which manufacturers knew of dangerous conditions for years while continuing to sell vehicles. The premise is the same as every other whistleblower program: the people who know are inside.
It is administered by the National Highway Traffic Safety Administration, and the award comes from sanctions the agency collects.
Who is eligible and what qualifies
Eligibility is limited to employees and contractors of manufacturers, part suppliers, and dealerships, which is narrower than most programs.
- Safety defects the manufacturer has not disclosed
- Noncompliance with Federal Motor Vehicle Safety Standards
- Violations of the early warning reporting requirements
- Failure to conduct a required recall or to notify owners
- Providing false or misleading information to the agency
Internal reporting is usually required first
Unlike the SEC program, this statute generally requires the whistleblower to report internally first and give the company an opportunity to address the issue, unless the person reasonably believed internal reporting would be futile or already knew the company was aware.
That requirement makes the sequence important. Reporting internally without understanding the protection you have is how people get exposed before they are covered.
Frequently asked questions
Do I have to report internally first?
Generally yes, unless you reasonably believed it would be futile or the company already knew. This is a meaningful difference from the SEC program and should be planned with counsel.
Can a dealership employee file?
Yes. Employees and contractors of dealerships are covered alongside those of manufacturers and part suppliers.
How large are the awards?
Up to 30 percent of sanctions collected where those sanctions exceed 1 million dollars. Awards are discretionary rather than mandatory.
The attorneys who handle these cases
Related reading
Talk to a whistleblower attorney before you report
A conversation costs nothing and is confidential. We will tell you honestly whether what you have describes a case, and what the first-to-file rule means for your timing.