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.
Drive to Baltimore Next Week for ASC’s Testing Short Course
ASC’s Testing Short Course takes place next week, September 21–23 in Baltimore, with expert-led sessions on adhesion, rheology, surface science, thermal and mechanical properties, spectroscopy, durability testing, data analysis, and more — plus a newly added hands-on mini rheology workshop. For many on the East Coast, driving to Baltimore may be the most convenient way to travel and still take advantage of this comprehensive technical program. View the topics, experts, and registration details online.
California Legislature Amends CIPA Pen/Trap Law for Website Claims – What’s Next?
On August 28, 2026, the California Legislature overwhelmingly passed Senate Bill (SB) 690, and it will now be presented to California Governor Gavin Newsom for signature. SB 690 is designed to limit the ongoing avalanche of lawsuits and demands targeting businesses for their use of analytical and advertising cookies, pixels, and similar technologies on their public-facing websites. However, SB 690 only applies to a small subset of website-related lawsuits that are brought under the pen register and trap-and-trace (“pen/trap”) provisions of §638.51 of the California Invasion of Privacy Act (CIPA), and therefore businesses are still at risk of receiving demand letters and complaints over their websites based on other areas of California law and federal statutes. Keep reading.
The $531 Million “Small” Business: SBA Proposes Massive Overhaul of Size Standards
The SBA recently published two proposed rules that would fundamentally redefine what qualifies as a “small” business. The first overhauls the methodology for setting size standards; the second applies that methodology to produce dramatically higher thresholds. In some NAICS codes, the increases exceed 1,400%. If adopted, firms in some industries could qualify as small even with average annual revenues exceeding $500 million, creating extended runway for some contractors while intensifying competition for others. Learn more.
“Double Dip” Health Plans Marketed to Employers: Too Good to Be True
Every few years, promoters resurface with new “double dip” health plan products promising employees more take-home pay and employers big employment tax savings. The pitch is familiar: employees pay large pre-tax “premiums” through a cafeteria plan, then receive substantial, “tax free” payments back through payroll that are just shy of the pre-tax contributions. Because the contribution was never taxed going in, and the payment is treated as tax-free coming out, the participant has effectively paid no taxes on that income. Judicious employers may not spot the issue because the impermissible tax benefit is frequently bundled with legitimate offerings like telehealth or hospital indemnity coverage.
Proponents claim that everybody wins. However, these arrangements don’t work under the law, as Treasury and the IRS have said repeatedly, and can expose employers to risk of liability for back taxes, penalties, and costly W-2 corrections. Read more.
USCIS Proposes Fee Exceeding $103,000 for Initial H-1B Petitions
In a proposed rule published in the Federal Register on August 25, the Trump administration laid out plans to impose a fee of more than $103,000 per petition on U.S. employers seeking to file petitions for new cap-subject H-1B visas.
The fee’s stated purpose is to provide a “dedicated revenue mechanism to help recover a portion of the federal government’s costs of administering the lawful immigration system, including activities carried out by DHS, the U.S. Department of Justice (DOJ), the U.S. Department of State (DOS), and the U.S. Department of Labor (DOL).” Explore further.
STB Lifts Abeyance in Union Pacific–Norfolk Southern Merger and Sets Procedural Schedule
On August 18, the Surface Transportation Board (STB) removed the Union Pacific-Norfolk Southern merger proceeding from abeyance and adopted a procedural schedule. Notices of intent to participate are due September 4. Comments, protests, and requests for conditions are due November 18. Shippers should act now to evaluate their interests in this proceeding and preserve the opportunity to participate.
Union Pacific and Norfolk Southern (collectively, Applicants) seek STB approval for Union Pacific's acquisition of control of Norfolk Southern. The transaction would consolidate the operations of the two railroads and create the nation's first transcontinental railroad. This proceeding is the first time the STB will apply its more stringent 2001 merger rules, which place a heavier burden on applicants seeking to demonstrate that a proposed transaction serves the public interest. Continue reading.
New BIS Rule Restricts Export of Certain Critical Minerals
The Bureau of Industry and Security (“BIS”) has published a temporary final rule to restrict the export of black mass and tungsten waste and scrap without a license. The agency defines black mass as shredded lithium-ion battery scrap that contains cathode material, anode material or other “residual battery cell materials.” The BIS will restrict export of these critical minerals to address an “inadequate supply” of those items, which threatens national defense and security.
Beginning on August 27, 2026, U.S. persons engaged in the sale of black mass and tungsten waste and scrap must allocate 100 percent of sales to U.S. persons, unless a license is obtained in advance from BIS. The restrictions apply until August 27, 2027, unless revoked earlier. Keep reading.
United States Implements 50% Tariffs on Canada; Canada Responds with Matching Retaliatory Tariffs
On August 21, 2026, trade negotiations between the United States and Canada faltered and the parties, for now, have ceased further negotiations. As a result, the United States has implemented 50% tariffs on a broad range of Canadian products under Section 338 of the Tariff Act of 1930. First announced on July 20, 2026 (see SmarTrade update of July 21, 2026), when President Donald Trump signed three Presidential Proclamations imposing these additional, implementation of these tariffs were delayed until August 22, 2026. Accordingly, U.S. Customs and Border Protection (CBP) has issued a Cargo Systems Messaging Service (CSMS) message providing guidance and instructions for importers, brokers, and filers on filing entries on certain imports from Canada entered for consumption, or withdrawn from warehouse for consumption, as of August 22, 2026. Learn more.
Employment Legislation Outlook
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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