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DOT Tightens Rules for Non-Domiciled CDL Holders | World Insurance

Written by Jeffrey Scafuro | Nov 11, 2025

The U.S. Department of Transportation (DOT) recently issued an emergency interim final rule that immediately changes how states issue and monitor non-domiciled Commercial Driver's Licenses (CDLs) and Commercial Learner's Permits (CLPs). The rule follows a nationwide audit that uncovered widespread noncompliance, weak oversight, and several fatal crashes involving drivers with invalid or expired CDLs.

This action represents one of the most significant reforms to commercial driver eligibility in decades. While it aims to strengthen road safety and restore confidence in the qualified driver pool, it also creates urgent compliance and insurance considerations for your business.

Why the Change Matters

A Federal Motor Carrier Safety Administration (FMCSA) investigation found that many state licensing agencies issued or extended CDLs beyond a driver's authorized stay in the U.S. Programming errors, limited staff training, and poor quality control allowed thousands of non-domiciled drivers to operate with expired or invalid documentation.

By tightening requirements, the DOT hopes to stabilize the driver pool and filter out unqualified operators—a move that helps legitimate carriers compete fairly and reduces the risk of catastrophic accidents that have shaken the industry in recent months.

Key Rule Highlights

  • Only drivers with H-2A, H-2B, or E-2 visas, plus a valid I-94 and unexpired foreign passport, can now hold a non-domiciled CDL.
  • Employment Authorization Documents (EADs) alone are no longer accepted, which excludes many DACA recipients, asylum seekers, and individuals with Temporary Protected Status.
  • States must verify immigration status using the federal SAVE system and keep records for two years.
  • A non-domiciled CDL is valid only for one year or the length of authorized stay, whichever is shorter.
  • All renewals and applications must be completed in person—no mail-in or online options.
  • States that fail to comply with the new rule risk losing federal highway funding.

Drivers from Mexico and Canada remain unaffected under reciprocal agreements, but thousands of others may face renewal issues or ineligibility in the coming years.

What You Should Do Now

If your fleet includes any non-domiciled drivers, the time to act is now. Failure to do so could interrupt operations, impact client relationships, and trigger coverage issues.

Immediate steps include:

  • Audit driver files for visa class, CDL expiration, and SAVE verification.
  • Verify eligibility directly through the SAVE system and keep documentation on file.
  • Update hiring and onboarding policies to flag applicants who no longer qualify.
  • Train recruiting, HR, and compliance staff on new verification procedures.
  • Plan for possible driver shortages by expanding recruitment pipelines and adjusting dispatch schedules.

Insurance and Risk Implications

Your insurance coverage could be at risk if an ineligible driver is behind the wheel during a loss. Many carriers exclude accidents involving unlicensed or improperly licensed drivers.

To protect your operation:

  • Schedule a policy review with your advisor to confirm your fleet's drivers remain fully eligible under the new rule.
  • List every qualified driver by name on policy schedules.
  • Add compliance certification and indemnity language to contracts with owner-operators and subcontractors.
  • Keep detailed license audit records to prove compliance if a claim is questioned.

Maintaining open communication with your advisor demonstrates good-faith risk management—and can help preserve favorable terms at renewal.

Driving Forward

This rule may disrupt operations in the short term, but it's ultimately a move toward a safer, more stable trucking environment. By ensuring every driver on the road meets federal requirements, your business helps protect lives, prevent costly claims, and strengthen the industry's integrity.

Now is the time to audit, verify, and adapt—so your fleet, your reputation, and your bottom line stay protected for the long haul.

 

This article is not intended to be exhaustive, nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice.