November 6th, 2025
Navigating Non-Domiciled…

The trucking industry relies heavily on a diverse workforce, including non-domiciled Commercial Driver’s License (CDL) holders—individuals whose primary residence is outside the 50 U.S. states but who are lawfully present in the United States under employment authorization. Under the Federal Motor Carrier Safety Administration (FMCSA), these drivers are recognized through regulatory frameworks designed to ensure public safety while accommodating labor needs. However, recent federal enforcement actions have revealed vulnerabilities in the CDL issuance process, prompting emergency reforms. For employers, hiring non-domiciled drivers introduces unique compliance challenges, particularly in defending against lawsuits arising from accidents or regulatory violations. This article explores FMCSA recognition of non-domiciled CDL drivers, recent regulatory updates, and practical strategies for motor carriers to protect themselves from litigation risks.

Recognition of Non-Domiciled CDL Drivers Under the FMCSA

Definition and Historical Context

Non-domiciled CDL drivers are foreign-domiciled individuals authorized to operate commercial motor vehicles in the United States under a limited-duration license. Unlike standard CDLs issued to U.S. residents, non-domiciled CDLs are clearly marked with the term “Non-domiciled” on the credential to indicate temporary status. This classification originates from 49 C.F.R. Part 383, which governs CDL issuance and requires proof of lawful presence but not U.S. domicile.

Historically, the FMCSA has allowed states to issue CDLs to non-domiciled drivers. However, insufficient oversight resulted in widespread improper issuances. In September 2025, a U.S. Department of Transportation (DOT) audit identified more than 200,000 non-domiciled CDL holders, many suspected of being improperly licensed. The audit also found that California had improperly issued more than 25% of its commercial licenses. In response, the DOT initiated enforcement actions and compelled immediate national reforms.

Eligibility Requirements for Non-Domiciled CDLs

To obtain a non-domiciled CDL or Commercial Learner’s Permit (CLP), applicants must:

  • Be domiciled in a foreign country but maintain lawful immigration status in the United States under specific employment-based visa categories.
  • Provide an unexpired foreign passport and immigration documentation confirming qualifying status.
  • Undergo immigration verification through approved federal systems.
  • Pass federal knowledge and skills tests.

Under new FMCSA rules, certain groups—including asylum seekers, refugees, and DACA recipients—are ineligible for CDLs despite being authorized to work. In limited cases, U.S. citizens or lawful permanent residents from U.S. territories may qualify as non-domiciled applicants depending on residence status.

The 2025 Interim Final Rule: Emergency CDL Reform

In response to at least five fatal crashes in early 2025 involving non-domiciled CDL holders and mounting concerns over licensing fraud, the FMCSA issued an emergency Interim Final Rule (IFR) on September 26, 2025, effective immediately. The rule amends 49 C.F.R. §§ 383.5, 383.71, and 383.73 to tighten eligibility and oversight.

Typically, interim final rules are issued with a public comment period before taking effect; however, due to the urgency of safety concerns, this IFR was published for immediate enforcement.

Key Changes Include:

  • Stricter Documentation and Verification
    States must retain applicant records for two years and may not issue temporary CDLs during immigration review.
  • No Remote Renewals
    All renewals must be completed in person to reduce fraud risk.
  • License Validity Tied to Immigration Status
    Non-domiciled CDLs now expire on the earlier of the applicant’s I-94 expiration date or one year from issuance.
  • Mandatory Downgrades
    States must revoke CDL privileges within 30 days of federal notification of immigration ineligibility.

These changes are expected to phase out approximately 194,000 non-compliant CDL holders over two years. While the reform strengthens safety, it deepens driver shortage challenges for employers.

Employer Responsibilities and Litigation Risks

Motor carriers that hire non-domiciled CDL drivers face increased exposure under vicarious liability doctrines such as respondeat superior. FMCSA violations—including incomplete qualification files or outdated immigration records—may establish negligence per se, leading to punitive claims in civil lawsuits. Under the IFR, employers must now closely monitor immigration-linked CDL eligibility or risk claims of negligent entrustment and gross negligence.

Core Obligations Under 49 C.F.R. Part 391

Motor carriers must:

  • Conduct pre-employment screening
    Review motor vehicle records (MVRs), complete criminal background checks, and query the Drug & Alcohol Clearinghouse.
  • Maintain Driver Qualification Files (DQFs)
    Keep updated medical exam certificates, employment history, annual MVRs, and violation statements.
  • Ensure hours-of-service compliance
    Enforce fatigue management policies and prevent driver coercion.

Failure to comply can result in FMCSA fines of up to $16,000 per violation and significantly undermine defenses in litigation.

Litigation Risk Reduction Strategies for Employers

Proactive compliance strengthens legal defenses by demonstrating due diligence. Employers should implement the following strategies when hiring and managing non-domiciled CDL drivers:

1. Strengthen Hiring Controls

  • Perform full FMCSA Clearinghouse queries—positive results now disqualify drivers for three years following rehabilitation.
  • Independently verify immigration status using the SAVE system.
  • Audit DQFs quarterly; missing documents are frequently used as evidence in lawsuits.

2. Increase Training and Oversight

  • Provide ELDT-compliant entry-level and refresher training.
  • Integrate defensive driving, accident reporting, and IFR compliance into safety programs.
  • Use dash cameras and telematics for evidence preservation.

3. Improve Maintenance Documentation

  • Follow 49 C.F.R. § 396 inspection schedules.
  • Retain repair logs and roadside inspection reports.
  • Digitize records to streamline FMCSA audits and litigation response.

4. Update Insurance and Contracts

  • Ensure liability policies cover non-domiciled driver risks.
  • Include indemnity clauses in contracts with brokers and subcontractors.

5. Enforce Incident Response Plans

  • Require immediate post-accident reporting.
  • Preserve ELD data and camera footage.
  • Coordinate early legal counsel involvement when litigation is likely.

Conclusion

The FMCSA’s regulation of non-domiciled CDL drivers reflects an effort to balance workforce demand with highway safety. However, the 2025 IFR signals a shift toward aggressive enforcement and enhanced screening. As plaintiff attorneys increasingly target compliance failures, carriers can reduce liability exposure through disciplined hiring, documentation, training, and insurance planning. Motor carriers should work closely with legal counsel to adapt to evolving federal requirements and protect operations during the IFR transition period.

For the latest FMCSA guidance, visit www.fmcsa.dot.gov.

If you have questions about this article, please contact Denise Reveski (dreverski@setlifflaw.com) at (804) 377-1272 or Steve Setliff (ssetliff@setlifflaw.com) at (804) 377-1261.