Auto Safety Whistleblower Reward Law Crippled by Agency Inaction

Today marks the one-year anniversary of the U.S. Department of Transportation’s (“DOT”) failure to publish rules implementing a critical auto safety whistleblower law.

The Fixing America’s Surface Transportation Act (‘‘FAST Act’)’ was enacted on January 6, 2015 and contained a reward law for whistleblowers who report “original information relating to any motor vehicle defect, noncompliance, or any violation or alleged violation … likely to cause unreasonable risk of death or serious physical injury.”

The FAST Act required the DOT to approve and publish regulations implementing the whistleblower law within 18 months after the date the law passed. As of today, DOT is one-year overdue on their mandatory deadline to publish the reward law.

“The failure of the DOT to protect whistleblowers in the auto industry is simply unacceptable,” said Stephen M. Kohn, who serves as the pro bono Executive Director of the National Whistleblower Center (“NWC”).

In February 2016, the NWC sent the DOT a letter as its initial comments on the rule informing the DOT of the 18 month deadline and recommended the DOT implement a whistleblower office similar to the Securities and Commodities Exchange (“SEC”) Office of the Whistleblower.

In June 2016, 18-months after the FAST Act was enacted and the deadline for the DOT to publish the reward laws, NWC sent a second letter. NWC submitted a formal proposal and rulemaking comments setting forth proposed rules for filing claims, clear definitions of original information and appropriate procedures for an internal appeal of claim denials. These proposed rules were based on the SEC’s rules and their successful Office of the Whistleblower.

“The FAST Act’s whistleblower provisions are critical to motor vehicle safety,” said Mr. Kohn. “Whistleblowers are the best persons to report motor vehicle defects or violations before those non-compliant cars hit the roads.”

One year after the deadline for the DOT to publish the rules, the DOT said in an email that they do not have a date for when the rules will be published, but whistleblowers may submit information to the National Highway Traffic Safety Administration (“NHTSA”) and will be afforded statutory protections and may receive an award prior to the promulgation of the regulations.

“Whistleblowers may submit information to NHTSA, and whistleblowers are afforded the protections contained in 49 U.S.C. § 30172(f). Furthermore, a whistleblower may receive an award prior to the promulgation of the regulations. See Pub. L. 114-94, § 24352(b), 129 Stat. 1720 (2015),” said Kerry Kolodziej, Acting Assistant Chief Counsel for Litigation and Enforcement at the Department of Transportation.

Related Links:

• The Whistleblower Law, 49 U.S.C. § 30172.
• The FAST Act
• First Letter from the National Whistleblower Center requesting that DOT implement the law
• Second Letter from the NWC requesting that the DOT implement the law
• A copy of proposed regulations provided to DOT