Clearinghouse Downgrades: What you Need To Know

Clearinghouse Downgrades to impact 180,000 drivers

Next week, almost 180,000 former truck drivers will lose their commercial driving privileges via a Clearinghouse Downgrade. Let’s review how this may impact your fleet.

TL;DR, this should really be a non-event for your fleet and for the industry at large. Don’t worry about the hype over this in the press.

None of your drivers should have a “Prohibited” status in Drug and Alcohol Clearinghouse violation and this downgrade event only applies to these drivers. 

Clearinghouse Downgrades Basics

Effective November 18, 2024, drivers with violations in the FMCSA’s Drug and Alcohol Clearinghouse will have their CDL or CLP downgraded by State Driver Licensing Agencies (SDLAs) as part of the Clearinghouse-II rule.

This final enforcement of the DACH regulations should now close a fairly large loophole that existed since the beginning of the Clearinghouse. Namely, a driver could fail/refuse a drug test and be forced to leave their current fleet. 

The presence of the DACH should (in theory) prohibit that driver from operating again before completing the Return to Duty process as all fleets would check the DACH to ensure that a driver was “Not Prohibited” prior to hiring them. 

BUT, we humans are savvy. Drivers that were terminated from one company went to work for another carrier who didn’t check the DACH, they started their own company or they left trucking altogether. 

So, it was determined that any driver who was “prohibited” in the DACH should also have their CDL or CLP “downgraded” so that they couldn’t operate as a commercial truck driver. 

In theory, this is a great idea. The execution was a bit different as multiple States (still very cash strapped from COVID recovery) basically said “that’s nice, but we can’t or won’t do that. So, the Feds gave them until 11-18-24 to get their proverbial houses in order to be able to execute on this order or face the possibility of losing their federal road funding. 

Many States have already completed this process and have been downgrading those “Prohibited” drivers for years now while some still aren’t quite at the 100% compliance that is sought. 

Why Clearinghouse Downgrades Will be a Non-Event

Regardless, this is going to be a big non-event for the industry despite what many of the trade publications are saying. Here’s why: 

180,000 sounds like a large number to begin with, but when compared to the number of CDL/CLP holders in the US (about 3,600,000), that’s just about 5% of the total possible driver population. 

So, this doesn’t apply to 95% of the possible drivers to begin with. 

Next, it’s believed that the majority of these 180,000 drivers are no longer driving professionally anyway. Some have retired but most have simply left trucking for other employment opportunities. With the demand for construction workers across all sectors growing steadily over the last 5 years, most believe that these “Prohibited” drivers simply left to seek employment there.   

For those who may have started their own company to skirt the regulations, this won’t matter either because they likely don’t give a crap about the status of their CDL if they don’t give a crap about failing a drug or alcohol test. 

I seriously doubt that a driver who is basically prohibited for working with a fleet due to their DACH status is suddenly going to stop operating because their CDL is going to be “downgraded”.

clearinghouse downgrades will be discovered during roadside inspections.

Yes, drivers in violation will be put out of service if their CDL is showing as downgraded during a roadside inspection. But, this won’t make any difference because law enforcement can currently query the DACH in real time to determine a driver’s Clearinghouse status. 

Almost 50,000 drivers were cited for operating without a CDL this year alone. Over 3,000 drivers have been cited for “Prohibited from performing safety sensitive functions per 382.501(a) in the Drug and Alcohol Clearinghouse“. 

So, you can see that some drivers aren’t really that concerned about operating in violation of either of these two regulations and will likely continue to do so despite these changes. 

All and all, this is nice, but should have no impact at all on your operations.