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Legal Updates

Chemical Industry Regulatory Update – September 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.

September Adhesive & Sealant Sustainability Summit

Join the industry’s only event dedicated exclusively to sustainability in adhesives and sealants. This year’s summit (September 20–24 in Cleveland, OH) offers a robust program focused on knowledge exchange, peer-to-peer networking, and collaborative strategies to advance sustainability across the industry and within your organization. The final agenda is now available online.

Sixth Circuit Raises Bar for Employer Liability in Third-Party Harassment Cases

On August 8, 2025, the U.S. Court of Appeals for the Sixth Circuit issued a significant decision in Bivens v. Zep, Inc., raising the standard for employer liability under Title VII for harassment committed by customers or other non-employees. The ruling deepens a split among federal circuits, with the Sixth Circuit joining a minority that requires proof of intentional conduct rather than negligence.

In Bivens, the plaintiff, a sales representative employed by the defendant, alleged that a motel manager inappropriately propositioned her during a sales call. After she reported the incident to her boss, her employer reassigned her to a different sales team. Shortly afterward, she was included in a layoff. The plaintiff sued her employer under Title VII and Michigan law, claiming her employer failed to prevent the motel manager’s alleged sexual harassment and retaliated against her for reporting it. Read more.

Recapping CARB’s Second Public Workshop for California’s Climate Disclosure Laws

On August 21, 2025,the California Air Resources Board (CARB) hosted its second public workshop to preview and solicit public feedback on proposed definitions and concepts underpinning rules for the Climate Corporate Data Accountability Act (SB 253) and the Climate-Related Financial Risk Act (SB 261). During the workshop, CARB proposed alternative definitions of “revenue,” “doing business in California,” and parent-subsidiary relationships, introduced a flat annual fee structure to fund both programs, and provided additional insight into implementation of each law. Thompson Hine partners Jurgita Ashley, Heidi B. Friedman and Tanya C. Nesbitt, along with senior counsel Kim Sim Sandell and associate Matthew N. Leder summarize key updates and relevant insights from the workshop below.

Overview of California’s Climate Disclosure Laws

In October 2023, California enacted two landmark climate disclosure laws, SB 253 and SB 261, now codified as California Health and Safety Code § 38532 and § 38533 respectively. Both direct CARB to promulgate implementing regulations, which are expected to be publicly release by mid-December. Learn more.

Is Your Business Ready for the New Texas (Mini-TCPA) Telemarketing Law?

On September 1, 2025, Texas Senate Bill 140 (SB 140), often referred to as the “mini-TCPA,” will take effect, amending Chapters 302, 304, and 305 of the Texas Business & Commerce Code. There has been a significant increase in telemarketing (and specifically SMS-related) lawsuits, and SB 140 sets forth additional challenges for businesses, particularly because it allows consumers to bring a private right of action for statutory violations.

The sponsors of SB 140 indicated that the bill is intended to address judicial decisions in this area – most notably Powers v. One Technologies (N.D. Tex. 2022) – that allowed businesses to avoid liability for unsolicited text messages because Texas law previously did not expressly cover such communications. SB 140 changes this framework in favor of consumers over businesses.

Though SB 140 is not retroactive, it applies to conduct occurring on or after September 1, 2025, leaving businesses a very short compliance window, including with respect to certain registration deadlines. Read more.

President Trump Signs Law Requiring Annual Report on Export Licenses Involving Certain Entities

On August 19, 2025, President Donald Trump signed the “Maintaining American Superiority by Improving Export Control Transparency Act” (H.R. 1316), amending the Export Control Reform Act of 2018 to enhance transparency from the agency responsible for administering the Export Administration Regulations (EAR). Specifically, the amendment requires the Department of Commerce’s Bureau of Industry and Security (BIS) no later than September 9, 2025. Read more.

Details Emerge on the U.S.-EU Trade Deal Announced in July

On August 21, 2025, the White House published a joint statement from the United States and the European Union (“EU”) announcing “key details” of a Framework on an Agreement on Reciprocal, Fair, and Balanced Trade (“Framework Agreement”). Though presented as a new accord, the Framework Agreement elaborates on a trade deal first announced in late July 2025, in which the EU agreed to eliminate all import tariffs on U.S. industrial goods and the United States in exchange would impose a 15% import tariff on EU goods while maintaining existing national security tariffs under Section 232 of the Trade Expansion Act of 1962 on steel, aluminum, and copper (all currently set at 50%). Continue reading.

UFLPA Annual Strategy Update: U.S. Department of Homeland Security Designates New High-Priority Sectors and Adds 78 Entities to Forced
Labor List

On August 19, 2025, the U.S. Department of Homeland Security’s Forced Labor Enforcement Task Force (FLETF) updated its Strategy to Prevent the Importation of Goods Mined, Produced, or Manufactured with Forced Labor in the People’s Republic of China under the Uyghur Forced Labor Prevention Act (UFLPA). The update highlights two primary areas:

(1) the Entity List has increased by 78 companies since the 2024 update, resulting in a total of 144 Chinese organizations whose products are presumptively prohibited from entering U.S. commerce; and

(2) the FLETF has designated additional high-priority enforcement sectors: caustic soda, copper, jujubes (red dates), lithium, and steel (in addition to aluminum, apparel, cotton and cotton products, polyvinyl chloride (PVC), seafood, silica-based products including polysilicon, tomatoes and downstream products). Learn more.

President Trump Further Delays Implementation of Increased Reciprocal Tariff Rates for China

On August 11, 2025, President Donald Trump issued an Executive Order announcing that he was suspending for another 90 days any increase on the reciprocal tariff rate currently in place for China. According to the Executive Order, negotiations continue with China “to address the lack of trade reciprocity in our economic relationship and our resulting national and economic security concerns. Through these discussions, [China] continues to take significant steps toward remedying non-reciprocal trade arrangements and addressing the concerns of the United States.” As such, President Trump will continue the suspension of higher ad valorem tariff rates and continue the 10% IEEPA reciprocal rate implemented by Executive Order 14298 until 12:01 a.m. EDT November 10, 2025. Continue reading.

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. 

Looking for Adhesive & Sealant Training?

ASC’s Training Acadehttps://www.ascouncil.org/certificate-programmy Certificate Program offers a convenient and cost-effective, web-based method of workforce training ideal for new or new to a role staff and professionals. A variety of flexible and affordable subscription options are available.

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.

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