HUBZone Firms May Count Part-Time Employees SBA has adopted a final rule allowing HUBZone companies to count part-time, temporary and leased employees equally with permanent, full-time workers. The rule is effective May 3, 2010, giving companies six months to prepare for the change. The agency has said businesses in construction and services asked for a more liberal definition of “employee” because they rely on temporary and part-time workers. A HUBZone firm is required to draw at least 35% of its workforce from residents of a HUBZone. By counting part-timers instead of full-time equivalents, SBA acknowledges it is easing employment requirements for HUBZone companies. A part-timer would have to work at least 40 hours a month to be counted as an employee. SBA said that will preclude companies from hiring a few token HUBZone residents to work one or two hours. Ron Newlan, chair of the HUBZone Contractors National Council, said the group had urged SBA to set the minimum hours worked higher than 40, because that could create even more jobs. “All in all it’s a very, very good regulation,” he said “It brings clarity to some of the foggy areas in the definition of employees.” The term “employee” includes those obtained through a temporary employment agency, leasing concern or through a union agreement, or co-employed under an agreement with a professional employer organization. Volunteers and people who receive deferred compensation or in-kind compensation do not qualify as employees, although an owner of the business will be counted if he serves without compensation.