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Blogs

A Postmortem on Employers’ Covid Vaccine Mandates

September 15, 20252 minute read

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If employers had only known the legal changes and the political backlash to come when they enacted Covid vaccine mandates in 2020 and 2021, they may have reconsidered. 

Faced at that time with a pandemic rendering many employees unable to work and threatening to affect many more, and based on information from government agencies whose guidance had previously been accepted as a matter of course, many employers enacted mandatory vaccine policies.  Few anticipated the amount of litigation that would result from their decisions regarding exemption requests, particularly religious exemption requests under Title VII of the Civil Rights Act of 1964. 

As of 2021 when employers were making their decisions on employees’ objections to the Covid vaccine, the 40-year old legal standard in effect allowed employers to reject a religious exemption request if it resulted in more than a de minimis cost.  In June 2023, however, the Supreme Court decided Groff v. DeJoy, which established a new standard for evaluating requests for religious exemptions related to employment. 

Groff holds that religious exemption requests must be accommodated unless the employer can demonstrate that the burden of doing so “would result in substantial increased costs in relation to the conduct of its particular business.”  This new standard was much more difficult for large, well-capitalized employers to satisfy.  And in an even bigger surprise, the Supreme Court ruled that the new standard should be applied retroactively. 

The effect of Groff is that denials of exemption requests that had previously seemed reasonable under a de minimis cost standard were now subject to reevaluation under the more stringent standard.  And, in the background, these reevaluations were occurring at a time when the Supreme Court had been elevating religious freedom in a variety of contexts and vaccines had become a hot button political issue. 

Now there is a proliferation of Title VII litigation from employees who lost their jobs or were forced into unpaid leave due to their refusal to be vaccinated against Covid.  The Groff standard prevents employers from obtaining summary judgments.  And juries are rendering significant awards in cases that make it to trial. 

The Groff standard is not the only interesting issue in Covid vaccine mandate cases.  The Fifth Circuit is currently deciding a case in which a class of approximately 1,000 employees is challenging United Airlines’ Covid-19 vaccine mandate.  The company rejected the class members’ exemption requests because it believed the requests were not sincerely rooted in religious beliefs.  Over the employer’s objection that examining the religious sincerity of exemption requests requires individual credibility determinations unsuited for a class action, a Texas district judge ruled that the plaintiffs could proceed as a class.  The Fifth Circuit just recently heard oral arguments in the case, and the panel’s comments suggested division along political lines.   

We will see how the Fifth Circuit ultimately rules in the United Airlines case.  It is clear, however, that an employer defending the denial of a religious exemption to a Covid-19 vaccine mandate is facing an uphill battle these days.  If only they had known what was to come…

A federal appeals court seemed to split over whether the religious sincerity of United Airlines Inc. workers challenging the company’s Covid-19 vaccination policy can be handled in class litigation.

www.bloomberglaw.com/…

Blogs

Recovered and Circular Carbon Blacks are Entering the Market, but More Progress is Needed to Meet Customer and Government Mandates

September 12, 2025less than a minute

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An emphasis on sustainability is driving tire and rubber manufacturers to seek renewable carbon blacks for use in their products. While recovered carbon black (rCB) is not yet a drop-in replacement for all tire and rubber applications, manufacturers are finding ways to incorporate rCB alongside virgin carbon blacks. In addition, virgin carbon blacks made from renewable or circular feedstocks such as Tire Pyrolysis Oil or bio-based feedstocks can be used in some applications, but often at a price and yield penalty when compared to traditional feedstocks. 

Going forward, the carbon black industry will be tasked with improving the sustainability, performance, and economics of the carbon black product slate to address customer demands and government requirements. This article in Rubber News covers the current state of play on these issues. 

As rCB and sustainable carbon black production increases, producers will face many of the same environmental, safety, health, and product stewardship challenges experienced by traditional carbon black manufacturers. In some ways, these newer products are similar to traditional carbon black, but in others they are very different, indicating that there may be important regulatory differences between the products.

Sustainable or recovered carbon blacks will see high growth from a low-volume base in the next 5-10 years.

www.rubbernews.com/…

Blogs

Podcast: Overriding Royalty Interests: An Extra (But Often Necessary) Cost of Operating

September 10, 2025less than a minute

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Join Matt Jones and April L. Rolen-Ogden on “Energy Law This Week” as they delve into the complexities of overriding royalty interests in the oil and gas industry. This episode explores why they are granted and how they work, with emphasis on the “washout” issues that often accompany the interests. Because these burdens are often part of oil and gas transactions, and because they are the way in which many landmen, geologists, and geophysicists get paid, an enormous amount of money is often at stake. And as with most interests, there is often a question of what costs are borne by it, particularly when it comes to post-production costs.  Often abbreviated as ORRI, the  Over-Riding Royalty Interests is a key feature of many oil and gas net revenue streams. (Program Note: Matt wanted to describe these issues as an “either/ORRI” situation; April recoiled in horror.)

Listen to the full episode on the Oil & Gas Global Network here. 

Blogs

EPA Hints at NSR Changes with Interpretation of “Begin Actual Construction”

September 9, 20252 minute read

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In a September 2, 2025, letter to an Arizona air permitting authority, USEPA signaled that it intends to amend its New Source Review (NSR) regulations to authorize a broader set of construction activities before (or without) receiving an NSR permit. In the letter, USEPA advises that it agreed with the Maricopa County Air Quality Department’s interpretation that the semiconductor project proposed by TSMC Arizona Corporation could proceed with construction of the core and shell elements of the facility as long as it does not involve emission units, its foundations, or related piping and ductwork. 

Proceeding with construction would be at TSMC’s own risk. Any pre-permitting construction would not influence the permitting decision; the permitting authority would still be entitled to deny the permit. If changes are needed to meet air quality standards or other permit requirements, TSMC may need to modify or rebuild parts of the structures that were already constructed. Subject to those conditions, though, TSMC could proceed with beginning construction on non-emission source elements of the proposed facility. Under previous interpretations of the construction permit requirements, only a much narrower set of activities, such as site clearing and grading and storage of materials, were allowed prior to receipt of an NSR permit.

This case-by-case determination by USEPA is in accordance with draft guidance issued under the first Trump Administration in March 2020. The agency indicated that it did not currently intend to finalize the existing guidance, but would be proceeding with formal rulemaking in 2026 to provide greater clarity on the construction activities that are permissible under the CAA prior to obtaining an NSR permit.

This interpretation was the first of three changes the administration made to its NSR permitting policies. Following its new interpretation of “Begin Actual Construction,” EPA reinstated the “no second-guessing” policy on September 15, 2025, and rescinded the “Reactivation Policy” on September 18, 2025, as part of its NSR program overhaul.

For further information on air permitting requirements for construction, please contact Greg Johnson, Clare Bienvenu, Emily von Qualen, or Colin North.

If a structure contains no emissions unit(s) it is not a ‘source’ subject to Clean Air Act permitting authorities because it does not emit or have the potential to emit pollutants.

www.epa.gov/…

Blogs

Podcast: Clearing the Air: Carbon Capture in the New Era

September 5, 2025less than a minute

In this episode of “Energy Law This Week,” hosts Matt Jones and April L. Rolen-Ogden are joined by LSU Law Professor, Keith Hall, to delve into the intricacies of carbon capture and storage, exploring its mechanisms, economic drivers, and regulatory frameworks. The discussion highlights the importance of federal tax credits as a financial incentive for companies to engage in carbon capture projects. The conversation also addresses the responsibilities associated with CO2 storage and the potential for monetizing captured CO2. Legislative changes impacting these initiatives are examined, along with the future prospects of carbon capture technology. 

Listen to the full episode on the Oil & Gas Global Network here.

Blogs

Podcast: Clearing the Air: Carbon Capture in the New Era

September 5, 2025less than a minute

In this episode of “Energy Law This Week,” hosts Matt Jones and April L. Rolen-Ogden are joined by LSU Law Professor, Keith Hall, to delve into the intricacies of carbon capture and storage, exploring its mechanisms, economic drivers, and regulatory frameworks. The discussion highlights the importance of federal tax credits as a financial incentive for companies to engage in carbon capture projects. The conversation also addresses the responsibilities associated with CO2 storage and the potential for monetizing captured CO2. Legislative changes impacting these initiatives are examined, along with the future prospects of carbon capture technology. 

Listen to the full episode on the Oil & Gas Global Network here.

 

Blogs

Podcast: Clearing the Air: Carbon Capture in the New Era

September 5, 2025less than a minute

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In this episode of “Energy Law This Week,” hosts Matt Jones and April L. Rolen-Ogden are joined by LSU Law Professor, Keith Hall, to delve into the intricacies of carbon capture and storage, exploring its mechanisms, economic drivers, and regulatory frameworks. The discussion highlights the importance of federal tax credits as a financial incentive for companies to engage in carbon capture projects. The conversation also addresses the responsibilities associated with CO2 storage and the potential for monetizing captured CO2. Legislative changes impacting these initiatives are examined, along with the future prospects of carbon capture technology. 

Listen to the full episode on the Oil & Gas Global Network here.

Blogs

D.C. Circuit Restores Title V Emergency Defense

September 5, 2025less than a minute

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In its September 5, 2025, opinion in SSM Litigation Group v. EPA, the U.S. Court of Appeals for the D.C. Circuit overturned EPA’s 2023 removal of the Title V affirmative defense for emergencies. 

The Court found that EPA’s justifications for removing the defense, namely that:

  • the defense unlawfully encroached on the judiciary’s role under the Clean Air Act to assess penalties for violations of emission limitations, and
  • the defense is effectively an exemption from applicable emission limitations and therefore renders those limitations not “continuous” in violation of the Clean Air Act,

were erroneous, with the court reversing the 2023 recission of the defense. 

Restoring the Title V emergency defense will keep permittees who exceeded emission limits as a result of emergencies from having to rely on agency or judicial discretion to avoid penalties for violations caused through no fault of their own. 

For more information on environmental compliance and enforcement, please contact Liskow attorneys Greg Johnson, Clare Bienvenu, Emily von Qualen, or Colin North.

On the merits, we conclude EPA’s rescission of the affirmative defense was not reasonably explained and not in accordance with law.

media.cadc.uscourts.gov/…

Blogs

The GENIUS Act

September 3, 2025less than a minute

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The GENIUS Act establishes the first regulatory guidelines for stablecoins in the United States, resolving conflicts between federal and state regulation of stablecoins. For most crypto enthusiasts, the GENIUS Act is a long-awaited, significant development. It is anticipated that it will lead to regulatory guidelines for the rest of the crypto industry. State-chartered depository institutions issuing stablecoins will be subject to joint regulation by both federal and state regulators. States must submit an initial certification of substantial similarity to the Secretary by July 18, 2026, and annual recertifications thereafter.  

Click the link below to read the full article in State Affairs and learn more about the GENIUS Act’s impact.

 

The GENIUS Act is a significant step in establishing a regulatory framework for payment stablecoins in the United States including reserve requirements, issuer disclosures, consumer protections and enhanced bankruptcy protection for holders, and may spur changes to existing laws in Louisiana.

pro.stateaffairs.com/…

Blogs

3rd Circuit Holds that Taxpayer Intent to Evade Taxes Not Necessary for the Indefinite Statute of Limitations to Apply

September 2, 20252 minute read

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On August 18, 2025, the United States Court of Appeals for the Third Circuit published its opinion in Murrin v. Commissioner, No. 24-2037 (3d Cir. 2025). The case involves taxpayer Stephanie Murrin, who underpaid her federal income taxes from 1993 to 1999. The underpayments arose because her tax preparer, Duane Howell, inserted false and fraudulent entries on her returns with the intent to evade tax. Importantly, Murrin herself did not cause these false entries and had no intent to evade tax.  

More than 20 years later, in 2019, the IRS issued a notice of deficiency for the unpaid taxes from those years. While Murrin did not challenge the amount of tax owed, the accuracy-related penalty, or the interest, she argued that the IRS was barred from assessing the liability by the standard three-year statute of limitations.

The U.S. Tax Court disagreed, holding that the exception in Internal Revenue Code § 6501(c)(1) applied. That provision allows the IRS to assess tax “at any time” where a return is false or fraudulent with the intent to evade tax. The court emphasized that the exception applies even if the fraudulent intent rests with the tax preparer rather than the taxpayer herself. Murrin appealed, and the Circuit Court affirmed the ruling. It held that § 6501(c)(1) does not require the taxpayer to have personally acted with fraudulent intent. Instead, the statute applies whenever a return is prepared and filed with the intent to evade tax, regardless of whose intent it was. As a result, the IRS’s notice of deficiency was valid and not barred by the statute of limitations.

This case underscores the importance of taxpayers carefully reviewing their tax returns before filing. Even when errors or fraudulent entries are made solely by a preparer, the taxpayer remains responsible for the accuracy of the return and may face significant financial consequences years or even decades later.

For more information regarding this case, contact Liskow attorneys Caroline Lafourcade, and Kevin Naccari and visit our Tax practice page.

This case underscores the importance of taxpayers carefully reviewing their tax returns before filing. Even when errors or fraudulent entries are made solely by a preparer, the taxpayer remains responsible for the accuracy of the return and may face significant financial consequences years or even decades later.

Blogs

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