HUBZone Employment Rule Proposed SBA is proposing a new rule allowing HUBZone companies to count part-time, temporary and leased employees equally with permanent, full-time workers. Businesses in such industries as construction and services have asked for a more liberal definition of “employee” because they rely on temporary and part-time workers. HUBZone firms are required to hire residents of a HUBZone for at least 35% of their workforce. The current rule allows them to count only permanent employees on a full-time-equivalent basis. The proposed rule would allow counting part-time and temporary employees only if they work at least 40 hours per month. “SBA does not want a firm to be able to claim HUBZone eligibility (e.g., the 35% residency requirement) where it merely hired a few HUBZone residents to work one or two hours a week,” the agency said in its explanation of the rule. SBA said the rule recognizes that some companies rely on leased employees and arrangements with a Professional Employer Organization. It said the rule change will make HUBZone employment rules consistent with rules for counting employees under size standards, except for the 40-hour-a-month requirement. In issuing the proposal, SBA invited comments on whether 40 hours per month is a suitable minimum work requirement and whether temporary workers should be employed for a specific period of time (such as six months) in order to be considered employees. The HUBZone Contractors National Council, a trade group, has not yet taken a position on the rule, Chairman Ron Newlan said. The proposed rule is RIN 3245-AF44 in the Jan. 26 Federal Register. Comments are due by Feb. 26.