Highway’s new feature allows brokers to screen carriers with non-domiciled CDL drivers

Highway, a leading firm in freight fraud mitigation and carrier identity, has introduced a feature allowing brokers to screen out carriers employing drivers with non-domiciled Commercial Driver’s Licenses (CDLs).

Regulatory Context Driving Industry Change

The introduction of this feature is a direct response to the Federal Motor Carrier Safety Administration’s (FMCSA) interim final rule, published on September 29, 2025. This regulation, titled “Restoring Integrity to the Issuance of Non-Domiciled Commercial Driver’s Licenses,” imposes stringent new requirements on the issuance and renewal of non-domiciled CDLs.

The rule limits eligibility to holders of H-2A, H-2B, and E-2 visas, effectively excluding approximately 194,000 drivers, including DACA recipients, asylum seekers, and others with Employment Authorization Documents (EADs). It mandates annual in-person renewals, prominent license markings, and immediate revocations for non-compliant issuances, with states facing potential loss of federal highway funds for non-adherence.

This regulatory shift was precipitated by safety concerns, underscored by at least five fatal crashes involving non-domiciled CDL holders in 2025, including a Florida Turnpike incident resulting in three deaths and an Austin crash claiming five lives, two of them children. The FMCSA estimates that non-domiciled CDLs constitute approximately 200,000 licenses, with audits revealing up to 25% improper issuances in states like California and Texas due to inadequate immigration verification.

A temporary stay issued by the U.S. Court of Appeals for the D.C. Circuit on November 11, 2025, has paused the rule’s enforcement, allowing states to resume pre-existing issuance practices in most cases. However, the ongoing uncertainty has prompted insurers to scrutinize carrier rosters, with some denying coverage for fleets employing non-domiciled drivers due to liability risks.

Highway’s New Feature: A Strategic Response

The rumor cited by Trucking Made Successful—“I am seeing this rumor circulating that Highway… is looking to make information available to brokers on which carriers hire non domiciled CDL drivers so that the freight broker can filter those carriers out and not work with them. Its an interesting rumor, but I am curious if there is any truth to that or if its silly gossip”—was quickly substantiated.

A follow-up post from @weasel425 confirmed the feature’s implementation, noting, “This is true and I have turned it on, however, it doesn’t let you block carriers who have non-domiciled drivers but rather carriers where the primary account owner (who registered with their ID card) was a non-domiciled license holder.”

The company, which annually verifies over 100,000 carriers through its onboarding platform, has integrated data from the FMCSA’s Pre-Employment Screening Program (PSP) and state Department of Motor Vehicle (DMV) records to enable this functionality. The feature flags carriers based on the domicile status of their primary account owner, aligning with the 2025 FMCSA mandate to use USDOT numbers for safety compliance checks. This allows brokers to exclude such carriers from load tenders and booking processes, addressing liability concerns heightened by the FMCSA rule and insurer scrutiny.

Highway’s leadership has positioned this as a risk mitigation strategy, particularly as legal experts warn of potential litigation risks tied to accidents involving non-compliant drivers.

Statement from Michael Caney, Chief Commercial Officer

Michael Caney, Highway’s Chief Commercial Officer, provided the following statement regarding the new feature:

“Freight brokers are reporting an increase in theft carried out via legitimate motor carrier authorities. These thefts succeed because the authority checks out, the truck arrives, and the load is stolen after pickup. Highway has identified this pattern across onboarding signals, load-level identity activity, and corroborating customer data.”

“In response to broker demand, Highway created an optional screening rule that highlights specific carrier attributes that appear within these theft patterns. One category relates to non-domiciled and limited-term CDLs, an area where federal agencies have increased their enforcement and investigative attention.”

“Highway emphasizes that the screening rule is optional and not a blanket exclusion. Brokers can override it instantly for carriers they trust. A Highway spokesperson stated that the goal is to ‘help brokers identify legitimate carriers and protect the freight they work to move by making them the hardest target.’”

“Highway confirmed it maintains regular communication with federal agencies and law enforcement, as well as ongoing engagement with carrier associations to ensure accurate understanding across the industry.”

Industry Reactions and Market Implications

The original X post created a lot of response from members of the freightX community.

Supporters, such as @MVanwesten87007, view the feature as a means to “filter out the bad actors and bad companies,” potentially phasing out non-domiciled driver employment.

Trucking Made Successful further speculated that “insurance companies, brokers and financial institutions” may drive this trend due to elevated monetary risks.

Critics like @paintbrush1977 highlighted a persistent market dynamic, stating, “Who ever will take a load from a truck broker for the least amount of money….Is the truck brokers best friend,” indicating that cost considerations may outweigh compliance efforts.

Meanwhile, @fondyin489, a 15-year industry veteran, defended Highway’s overall utility, questioning the feature’s controversy. The U.S. Postal Service’s experience with phasing out non-domiciled drivers serves as a historical parallel, suggesting a gradual rather than immediate market shift.

Strategic Considerations and Outlook

This development presents both opportunities and challenges. For brokers, the feature enhances compliance with FMCSA regulations and insurer requirements, potentially reducing legal exposure.

However, the exclusion of carriers employing non-domiciled drivers could reduce available capacity, particularly in spot markets where non-domiciled drivers are more common than in contracted freight.

This could lead to upward pressure on freight rates and exacerbate challenges for small carriers already impacted by the FMCSA rule’s workforce reduction.

The current court stay mitigates immediate enforcement, but proactive measures by insurers—conducting real-time audits of driver credentials—signal a broader industry trend. Stakeholders are advised to monitor legal proceedings, assess carrier networks for compliance, and prepare for potential market adjustments. Whether Highway’s feature proves a transformative tool or a temporary adjustment remains contingent on regulatory outcomes and industry adoption.

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