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How Fleets Should Respond to the Non-Domiciled CDL Legal Battle

A federal appeals court delivered significant news for the trucking industry this week, temporarily halting the Department of Transportation’s controversial emergency restrictions on non-domiciled commercial driver’s licenses. The administrative stay, issued Monday by the U.S. Court of Appeals for the District of Columbia Circuit, puts the September 29, 2025, emergency order on hold while legal challenges proceed—creating both relief and uncertainty for fleets navigating an already stressful regulatory environment.

The Safety Concerns Behind the Emergency Order

The current controversy stems from a comprehensive DOT audit that uncovered widespread problems in how states issue CDLs to non-U.S. citizens. Federal investigators found systematic failures across multiple states, including procedural errors, computer programming flaws, and inadequate oversight in the issuance of non-domiciled CDLs—licenses issued to certain non-U.S. citizens who are lawfully allowed to work in the U.S. but don’t meet traditional residency requirements in the issuing state.

The safety concerns driving these restrictions are serious. Federal officials identified at least five fatal crashes involving 12 deaths in the first nine months of 2025 involving non-domiciled CDL holders. According to FMCSA findings, at least two of these drivers had been improperly issued their licenses.

The core challenge centers on verification. Unlike domestic drivers, states cannot reliably access foreign driving records to check for prior violations, suspensions, or crash histories. This documentation gap means drivers with problematic histories abroad could obtain U.S. commercial licenses without proper vetting—a risk the DOT deemed unacceptable.

The Emergency Order and Its Immediate Impact

On September 29, Transportation Secretary Sean Duffy announced an interim final rule that dramatically tightened protocols for non-domiciled CDL issuance. The order, which took effect immediately without the typical notice-and-comment period, made several sweeping changes:

  • Employment Authorization Documents (EADs) were no longer sufficient for obtaining a non-domiciled CDL
  • Only holders of specific visas (H-2A, H-2B, or E-2) would qualify
  • Asylum seekers, asylees, refugees, and DACA recipients were effectively banned from obtaining or renewing these licenses

FMCSA estimated these changes would affect approximately 194,000 current non-domiciled CDL holders—a number that represents a significant portion of the commercial driving workforce. The agency justified bypassing normal rulemaking procedures by citing urgent safety concerns and the risk that advance notice could trigger a surge of applications from soon-to-be-ineligible drivers.

The Legal Challenge and Court’s Response

The emergency order faced immediate legal opposition. Two separate lawsuits were filed challenging both the substance of the rule and the process used to implement it.

The first case, Lujan v. FMCSA, was brought by two commercial drivers and several labor unions. Lead petitioner Jorge Rivera Lujan exemplifies the human impact: a DACA recipient who has been in the U.S. since age 2, he operated a trucking business with a non-domiciled CDL for 11 years but found himself unable to renew his license after the order took effect. His co-petitioner is an asylum seeker facing similar restrictions.

The second case, King County v. FMCSA, was filed by King County, Washington, which employs non-domiciled CDL holders to operate its public transit fleet and faces operational disruptions from the new restrictions.

Both cases argued that FMCSA failed to demonstrate a genuine emergency justifying the bypass of normal rulemaking procedures. The petitioners emphasized that the agency itself acknowledged no direct link between immigration status and driving ability.

What the Court Decision Means Now

Monday’s administrative stay provides temporary relief but doesn’t resolve the underlying dispute. The court was careful to note that the stay serves only to give judges time to consider the emergency motions and shouldn’t be interpreted as a ruling on the case’s merits.

The practical implications remain somewhat unclear. While the stay theoretically allows states to resume issuing and renewing non-domiciled CDLs under the prior federal standards, some states may choose to continue applying the tighter protocols they adopted after the emergency rule was announced. Adding to the complexity, FMCSA has kept the public comment period open through November 28, signaling its intent to finalize the rule regardless of ongoing litigation.

Meanwhile, legislative efforts are underway to make the restrictions permanent. Representative David Rouzer’s Non-Domiciled CDL Integrity Act (HR5688), which would codify the emergency order into law, has garnered 33 co-sponsors and support from the Owner-Operator Independent Drivers Association.

Should Fleets Be Concerned?

The answer is yes—but with measured preparation rather than panic. The current legal uncertainty creates several challenges fleets must navigate:

Immediate Considerations:

  • The stay is temporary and could be lifted at any time
  • State licensing agencies can revert to the prior FMCSA standards, but some may still choose to voluntarily keep the tighter protocols they adopted after the rule came out
  • Congressional action could make restrictions permanent regardless of court outcomes
  • Even with the stay, some states may have already begun enforcement actions

Long-term Planning Needs

While the immediate crisis has paused, the underlying issues haven’t disappeared. The DOT’s safety concerns, combined with strong political support for tighter restrictions, suggest this issue won’t simply fade away. Fleets should prepare for a future where non-domiciled CDL requirements are permanently more restrictive.

Action Steps for Compliance Teams

Given the fluid situation, fleets should take proactive measures:

  • Audit Your Workforce: Identify all non-domiciled CDL holders in your fleet, documenting their current visa status, license expiration dates, and eligibility under both old and new standards.
  • Develop Contingency Plans: Create scenarios for various outcomes, including the stay being lifted, new legislation passing, or states independently adopting stricter standards.
  • Strengthen Documentation: Ensure all driver qualification files are complete and current, with particular attention to work authorization documentation.
  • Monitor Developments: Track court proceedings, legislative actions, and state-specific enforcement decisions that may affect your operations.
  • Communicate Transparently: Keep affected drivers informed about the situation and potential impacts on their employment status.
  • Review Recruitment Strategies: Consider how potential workforce changes might affect your hiring needs and develop relationships with visa-eligible driver pools.

Expert Guidance Through Uncertainty

This situation is moving quickly, and the rules could change again with little notice. US Compliance Services will continue to monitor the court proceedings and FMCSA actions, and will share updates as soon as they become available.

If you’re unsure how this impacts your drivers or need help tightening up your compliance processes, just let us know. We’re here to answer questions, review files, and make sure your fleet stays protected.