Products Liability Law Daily Wrap Up, MOTOR VEHICLES—Senate unanimously backs bipartisan motor vehicle whistleblower bill, (Apr 29, 2015)

By Pamela C. Maloney, J.D.

The bipartisan Motor Vehicle Safety Whistleblower Act (S. 304) was unanimously approved by the U.S. Senate on April. The bill, which is co-sponsored by Sen. John Thune (R-S.D.), the committee chairman, and Sen. Bill Nelson (D-Fla), the ranking member, was ordered reported favorably by the Committee on Commerce, Science, and Transportation on February 26. The measure now goes to the U.S. House of Representatives consideration.

S. 304 would allow employees or contractors of motor vehicle manufacturers, part suppliers, and dealerships to receive up to 30 percent of the monetary penalties resulting from a DOT or U.S. Department of Justice enforcement action that totals more than $1 million if they share original information not previously known to the DOT relating to any motor vehicle defect, noncompliance, or any violation of reporting requirements that is likely to cause risk of death or serious injury.

The bill takes into account whether the whistleblower had the opportunity to report the problems internally, as well as the significance of the information. It will also protect whistleblowers’ identities. The legislation, which was first introduced last November, is modeled after existing statutory whistleblower protections that encourage individuals to share information with the Internal Revenue Service and the Securities and Exchange Commission.

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