In March 2008, it was announced that Simon had signed to the Starbucks label, Hear Music. She released a new album entitled This Kind of Love with them in the spring of 2008. The album was her first collection of original songs since 2000's The Bedroom Tapes. However, in October 2009, it was reported that Simon was suing Starbucks, saying they did not adequately promote the album—even though it made the US Top 20 (No. 15) and sold nearly 150,000 copies. Simon's lawsuit stated that Starbucks publicly announced it was backing out of participation in Hear Music just days before the album came out—a decision that she claimed doomed the record before it was even released.
On June 19, 2008, Simon and her son Ben performed "You're So Vain" together on The Howard Stern Show on Sirius Satellite radio.
In an interview published on May 1, 2008, with the Bay Area Reporter, an LGBT news service, Simon was asked about the possibility of a performance in the True Colors Tour. She responded, "The part that I could be involved in is the gay and lesbian part. The part that would be hard for me is to commit to a tour, because I'm not very comfortable being onstage. But the part that would be easiest for me would be singing on behalf of all of us. I don't consider myself to be not gay... I've enlarged all of my possibilities. I have a lot of extremely personal stories to tell about that, but we won't go into that right now. Let's just say that it just depends upon who I'm with."
In 2008, Simon was reportedly dating Richard Koehler, a surgeon specializing in minimally invasive laparoscopy. Koehler, who is ten years younger than Simon, was said to have been dating her as early as 2006. In 2015 the two were reported living together in Martha's Vineyard.
"You're So Vain" has been covered and sampled by artists as diverse as Liza Minnelli, Faster Pussycat, and Marilyn Manson (featuring Johnny Depp). Foo Fighters covered the song at the "Grammy Nominations Concert Live!!" in 2008. The song "Starfuckers, Inc." by Nine Inch Nails references "You're So Vain" by quoting the chorus. Queens of the Stone Age sampled the song as "You're So Vague" on the deluxe edition of their album Rated R. Janet Jackson sampled the song in "Son of a Gun (I Betcha Think This Song Is About You)", with Simon providing featured vocals. Trey Songz directly samples the song in the chorus of his single "About You", featured on his 2015 album Trigga Reloaded.
Adam Sandler covered "Nobody Does It Better" before receiving the MTV Generation Award on the 2008 MTV Movie Awards (the words were modified to reflect Sandler). Celine Dion also performed the song as part of her self-titled show in Las Vegas. Radiohead used to perform the song as part of their set during the mid-90s. Bobby Brown covered the song with Whitney Houston on his 1997 album Forever.