Automotive Whistleblower Bill Approved by Senate

The U.S. Secretary of Transportation is looking to incentivize whistleblowers in the auto industry in the name of safety. 

After a year of record recalls, the U.S. Senate has approved a bill that gives the U.S. Secretary of Transportation the discretion to award those who are willing to blow the whistle on potential safety issues at automakers.

The bill allows these whistleblowers to receive up to 30 percent of the total monetary penalties resulting from Department of Transportation or Justice Department enforcement actions. The bill covers employees or contractors of motor vehicle manufacturers, parts suppliers and dealerships.

The legislation was first proposed last November and will potentially allow industry employees to be paid millions if they reveal hidden dangers that companies and automakers might try to keep quiet.

SEE ALSO: NHTSA Seeks Takata Whistleblowers

In May 2014, GM paid a record $35-million fine to NHTSA over tardy recalls. If a whistleblower had alerted the agency, they could have collected up to $10.5 million under the new bill. The bill also takes into account whether the whistleblower had the opportunity to report the problems internally and the significance of the information supplied. Naturally it will protect the identities of the whistleblower.

“This bill provides important incentives for whistle-blowers in the auto industry to bring safety concerns to the attention of federal regulators when harmful safety defects are not reported,” said Senate Commerce chairman, John Thune, R-S.D. “While laws and regulations currently provide certain penalties for unaddressed safety failures, this legislation seeks to help identify and stop problems before anyone is killed or seriously injured.”

[Source: Detroit News]