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Legal Updates

Chemical Industry Regulatory Update – October 2025

A newsletter from The Adhesive and Sealant Council and Thompson Hine LLP

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.

Still Time to Attend Executive Gathering Next Week in St. Pete Beach, Florida

ASC’s Executive Leadership Conference will be held next week, October 20-22, at the Don Cesar beachfront resort. This exclusive industry conference is designed to bring insights and perspectives that matter to CEOs, Senior VPs, Executives, and General Managers to help you stay ahead of the curve and navigate in challenging geopolitical times. You’ll hear from and interact with some of the most influential voices inside and outside our industry including:

  • INNOVATION LEADERSHIP with Dr. Jayshree Seth, Chief Science Advocate & Corporate Scientist, 3M
  • BUILDING RESILIENCE IN TIMES OF DISRUPTION with Stephan Liozu, Founder, Value Disruption Advisors
  • MERGERS & ACQUISITIONS with Alain Harfouche, Senior Managing Director, Guggenheim Securities
  • AI & SUPPLY CHAIN with Lisa Yu, Founder & President, American Gold Standard
  • LEADING WITH VISION & INSTINCT with Megan Gluth, CEO & Owner, Catalynt Solutions
  • U.S. & ADHESIVE INDUSTRY ECONOMIC OUTLOOK with Kevin Swift, Senior Economist, ICIS
  • TARIFFS & TRADE: An Open Discussion About Common Challenges, Strategies, & Opportunities

California Finalizes AI-in-Employment Antidiscrimination Regulations

The California Civil Rights Department (CRD) is charged with enforcing many of the state’s robust civil rights laws, including those in the areas of employment, housing, businesses and public accommodations, and state-funded programs and activities. On June 30, 2025, the California Civil Rights Council, which issues regulations, announced final approval of regulations that address the use of artificial intelligence (AI), algorithms, and other automated-decision systems in employment. Continue reading.

CMMC 2.0 Implementation Rule

On September 10, 2025, the Department of Defense (DoD) published its final Cybersecurity Maturity Model Certification (CMMC) rule in the Federal Register, which takes effect on November 10, 2025. This “CMMC Acquisition Rule” officially begins the rollout of cybersecurity requirements across DoD contracts. Specifically, DoD will implement CMMC requirements in four phases over a three-year period, based on the certification level applicable to a DoD contract solicitation or bid. Read more.

Third Circuit Affirms Corporate Boards Control Bankruptcy Filings Despite Out-of-State Receivers

The U.S. Court of Appeals for the Third Circuit has reinforced the primacy of corporate governance under state law in mass-tort bankruptcies, holding that Whittaker Clark & Daniels Inc. properly filed for bankruptcy under New Jersey law, even in the face of a South Carolina receivership order. Critically, the court confirmed that successor liability claims arising from asbestos-talc litigation are property of the bankruptcy estate, not individual creditors, centralizing control over these claims for the benefit of all creditors. The decision clarifies the boundaries between state receivership authority, corporate board powers, and federal bankruptcy law, with particular significance for mass-tort and successor liability issues. Explore further.

DOJ’s Top White Collar Enforcement Priorities: Four Key Areas of Focus for GCs

When the president paused Foreign Corrupt Practices Act (FCPA) enforcement earlier in the year, many thought that white collar enforcement would be less robust under this administration. But recent policy memoranda and guidance from the DOJ suggest otherwise. Rather, the DOJ has shifted its resources to focus on the investigation and prosecution of crimes that impact America’s national security and competitiveness in the global marketplace. In addition, there will be aggressive enforcement of waste, fraud and abuse in federal contracting and federal programs. Given this, as we move through 2025 and into 2026, white collar enforcement could well be poised for a significant uptick over recent years. As such, it is critical that general counsels understand these new priorities and take the necessary steps to proactively manage risk, ensure compliance, and protect their organizations from potential investigations and enforcement actions. Learn more.

Transportation M&A Risks and Strategies: Why Specialized Transportation Counsel Matters

When an acquisition, divestment, or merger involves freight carriers, brokers, third-party logistics providers, or any company with transportation assets or operations, the deal becomes far more complex. Regulatory approvals, safety compliance, and a maze of state licensing and operational rules can disrupt timelines, erode value, and expose buyers to liability and commercial risks that outlive closing. Engaging experienced transportation counsel in the diligence process is critical to managing these risks. Explore further.

Trump Administration Continues to Target the H-1B Visa Program, Now Proposing to Favor Higher Paying Positions

Last week, President Trump signed an Executive Order imposing a new $100,000 fee for H-1B petitions. There are many questions remaining on the scope (and even the enforceability) of that executive action. In the meantime, though, the administration is continuing its attempt to revamp the H-1B visa program. The Executive Order calling for the $100,000 fee also directed the “Secretary of Homeland Security [to] initiate a rulemaking to prioritize the admission as nonimmigrants of high-skilled and high-paid [foreign nationals].”

The proposed new rule that would change the availability of H-1B visas, favoring higher-paid positions, was published in the Federal Register on September 24, 2025. Read more.

SEC Issues Updated Regulatory Flexibility Agenda

On September 4 the Securities and Exchange Commission (SEC) issued its updated Regulatory Flexibility Agenda (“Agenda”), its first new Agenda in the second Trump administration. SEC Chair Paul S. Atkins called it “a new day” at the agency and said that the priorities listed in the Agenda signify a “renewed focus on supporting innovation, capital formation, market efficiency, and investor protection.”

The Agenda’s list of rulemakings, each at various stages of the process, offers the first real insight into where regulated entities and individuals should focus compliance efforts, as well as the SEC’s likely investigative and enforcement actions in the coming years. Continue reading.

Court Sets Aside Part of FMC’s Demurrage and Detention Billing Rule

On September 23, the D.C. Circuit Court of Appeals set aside part of the Federal Maritime Commission’s (FMC) recent rule regulating demurrage and detention invoices. See Demurrage and Detention Billing Requirements, 89 Fed. Reg. 14330 (Feb. 26, 2024) (Final Rule). As we covered in a previous alert, the Final Rule implemented provisions of the Ocean Shipping Reform Act of 2022 (OSRA 2022). It required invoices for demurrage and detention to be issued to only the shipper that contracted with the billing party for ocean transportation or storage (i.e., the ocean carrier or NVOCC) or to a consignee. The Final Rule also required said invoices to contain specific information and outlined the procedures to dispute such invoices. Learn more.

Department of Commerce Lists EU Tariff Exemptions

On September 24, 2025, the U.S. Department of Commerce announced tariff exemptions for certain goods imported from the EU. The notice modified additional duty rates applicable to certain imported products of EU member countries.

On August 21, 2025, the United States and the EU announced an agreement that adjusted tariffs on certain EU products, including automobiles and auto parts, unavailable natural resources such as cork, civil aircraft, and generic pharmaceuticals and their ingredients and chemical precursors. For some of these goods, the revised tariff rate is zero, provided they are properly entered. Keep reading.

Federal Circuit Upholds CIT Decision Supporting China Section 301 Lists 3 and 4A Tariffs

On September 25, 2025, a three-judge panel at the U.S. Court of Appeals for the Federal Circuit (CAFC) upheld the decision of the Court of International Trade (CIT) sustaining the China Section 301 tariffs. This decision followed oral argument at the CAFC on January 8, 2025, in the test case for the China Section 301 tariff refund litigation (HMTX Industries LLC, et al. v. United States et al.). Much of the discussion at oral argument focused on whether the addition of the List 3 and List 4A tariffs at a later date qualified under the language of the Trade Act of 1974 at Section 307 as a “modification” of the initial action arising from the Section 301 investigation, report and decision or whether these later actions and these additional tariffs were more than a “modification.” Explore further.

Department of Commerce Initiates Section 232 Investigation of Imports of Robotics and Industrial Machinery

On September 2, 2025, the Department of Commerce (Commerce) initiated an investigation under Section 232 of the Trade Expansion Act of 1962, as amended, to determine the effects on the national security of imports of robotics and industrial machinery. According to the notice, the term “robotics and industrial machinery” for this investigation includes, among other things, robots and programmable, computer-controlled mechanical systems; further details are provided in the notice. Interested parties may submit written comments, data, analyses, or other information to the Office of Strategic Industries and Economic Security at Commerce’s Bureau of Industry and Security (BIS) no later than October 17, 2025. Continue reading.

Trade Secret Quarterly – September 2025

Protecting Against the High Cost of Trade Secret Violations

Staggering awards in trade secrets violation cases have become almost commonplace. In recent months, an aerospace company was hit with an $81 million damage award in Seattle after a jury found it misappropriated the trade secrets of an aircraft startup; in California, a reliable energy company was ordered to pay $604.9 million in compensatory damages and $195 million in punitive damages to a low-carbon fuel company in a trade secrets case; in Massachusetts, a manufacturer of wearable insulin pumps was awarded $452 million in damages (though the court later reduced the amount to $59.4 million with a permanent injunction); and in Arkansas, a national retailer was found liable to a startup focused on reducing food waste with an award of $72.7 million in compensatory damages and $150 million in exemplary damages.

Another high-impact case out of Illinois highlights the price tag that a company may pay when it hires an employee who uses a former employer’s trade secrets. Learn more.

Environmental L.A.W.S. – Regulating Responsibility: The Rise of EPR

Extended Producer Responsibility (EPR) is quickly reshaping how companies approach packaging, waste management, and sustainability. With new state laws emerging across the U.S., established frameworks in Canada, and global models influencing policy, businesses are navigating both complex compliance challenges and new opportunities.

In this episode of Environmental L.A.W.S., Tanya Nesbitt sits down with Gareth McDonald, Principal Consultant at Worley Consulting, to break down what EPR really means in practice. They discuss how EPR laws are taking shape across U.S. states, lessons from Canada’s longer track record with EPR, cross-border and global compliance considerations and they also explore where EPR policy is headed in the next five years. Listen in.

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. 

For more information, contact the editor, Devin A. Barry.

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.

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