The chemical industry is subject to complex and ever-evolving laws and regulations. New standards governing the production and use of chemicals are implemented every year worldwide, and existing laws and regulations are constantly changing to keep pace with new information and scientific advancements. Chemical Industry Regulatory Update provides a monthly digest of recent legislative and regulatory developments and related industry news.
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EPA Proposes to Partially Rescind PFAS Drinking Water Standards
On May 18, 2026, the United States Environmental Protection Agency (EPA) announced a proposed rule to rescind the enforceable Maximum Contaminant Levels (MCLs) for four per- and polyfluoroalkyl substances (PFAS) —PFHxS, PFNA, HFPO-DA (GenX chemicals), and Hazard Index mixtures of these three plus PFBS—that were finalized in April 2024 under the Biden Administration. The agency contends that the prior rulemaking failed to follow proper procedures under the Safe Drinking Water Act (SDWA) and characterizes the rescission as a procedural correction rather than a substantive determination regarding PFAS safety. However, EPA notes that the proposed rule, if finalized, would also continue the agency’s current PFAS approach of providing “practical, scientifically-sound drinking water protections.” Explore further.
The Old Rule Is Now the New Rule: DOL Restores Prior Overtime Salary Thresholds
On May 14, the U.S. Department of Labor (DOL) officially rolled back its 2024 overtime rule, publishing a “technical amendment” that restores the 2019 salary thresholds for exempt employees. This change applies immediately, without notice or comment, in light of court rulings invalidating the Biden-era 2024 overtime rule.
Background
The Fair Labor Standards Act (FLSA) requires covered employers to pay overtime to most workers. However, bona fide executive, administrative, or professional employees, as well as those in outside sales positions and highly skilled computer professionals, are exempt from overtime requirements if their job duties comply with certain definitions within the FLSA and they earn above a minimum salary threshold. Read more.
ICE Reclassifies Common I-9 Errors as Substantive Violations — Immediate Action Recommended
On March 17, 2026, U.S. Immigration and Customs Enforcement (ICE) issued new guidance to its I-9 auditors that dramatically changes enforcement priorities. The guidance reclassifies numerous common Form I-9 errors that were previously treated as minor, correctable "technical" violations as "substantive" violations subject to immediate monetary penalties of $288 to $2,861 per form. These changes eliminate the traditional 10-business-day cure period that employers historically relied upon for many mistakes and materially increase employer risk during inspections. Learn more.
FAR Council Announces Implementation Requirements for New FAR DEI Clause
The Federal Acquisition Regulatory Council (FAR Council) has issued a memorandum that sets forth a new Federal Acquisition Regulation (FAR) clause implementing the requirements of a March 2026 Executive Order prohibiting “racially discriminatory DEI activities” by federal contractors and subcontractors. The memorandum also establishes a timeline for incorporating the new FAR DEI clause into solicitations and existing contracts and provides guidance on reporting obligations under the clause. Contractors should be prepared to incorporate the new clause into their contracts and to comply with the obligations imposed by the clause, including oversight of subcontractors’ duties under the clause. Keep reading.
No Comment: SEC Nixes “Neither Admit nor Deny” Settlement Requirement
On May 18, the SEC overturned a seminal settlement policy that has stood for over 50 years: remaining silent in settlement (otherwise known as the “gag rule”).
Previously, Rule 202.5(e) adopted the SEC’s policy that a civil lawsuit or administrative proceeding defendant could not consent to an order settling a matter while also denying the allegations. This policy popularized the “without admitting or denying” language so ubiquitous in SEC settlements. This is no longer the case.
Its abrupt rescinding of this policy means that the SEC will no longer require defendants to agree to such settlement conditions, nor seek to enforce them in existing settlements. Explore further.
FinCEN Issues Notice on Human Trafficking Threats During the 2026 FIFA World Cup
On May 11, 2026, the U.S. Department of the Treasury's Financial Crimes Enforcement Network ("FinCEN") issued a notice (FIN-2026-NTC1) urging financial institutions to be vigilant in detecting, identifying, and reporting suspicious activity connected to human trafficking associated with the 2026 FIFA World Cup. FinCEN warns that while human trafficking is an ever-present threat, major events like the World Cup can create concentrated demand for both lawful and illicit services, increasing vulnerability to trafficking. Learn more.
Check out the latest Employment Legislation Outlook. This monthly digest is designed to keep you apprised of upcoming major state law changes in areas including paid sick and safe leave laws, family and parental leave, recreational and medicinal marijuana use, workplace gun laws, asking candidates about salary history and unpredictable scheduling.
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For more information, contact the editor, Devin A. Barry, or any of the authors.
Chemical Industry Regulatory Update is compiled by Thompson Hine lawyers on behalf of The Adhesive and Sealant Council. It should not be construed as legal advice, and the views and opinions expressed herein are those of the authors and do not necessarily reflect those of the ASC or its members.