California whistleblower lawyers say a new proposed bill could give auto industry employees financial incentive to report product defects or safety violations.
A bill proposing to offer financial incentives to auto industry employees who expose safety defects recently won backing from the Senate Commerce, Science and Transportation Committee. The bill, which California whistleblower lawyers say is modeled after IRS and SEC whistleblower protections, will now go to the floor of the Senate.
If passed, California whistleblower lawyers say that auto industry employees could receive up to 30% of a settlement for passing along original information regarding product defects or safety violation. It could also help to speed along recalls, which would ultimately benefit car owners.
The proposed bill comes in the wake of two deadly auto recalls over defective General Motors Co ignition switches and Takata Corp air bag inflators. Both companies were ordered to pay penalties.
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