Upcoming Events: Register to attend PilieroMazza’s upcoming events here. Recent Thought Leadership: Check out PilieroMazza’s recent client alerts and blogs here. GovCon Live! Podcast: Listen to PilieroMazza’s latest episodes and follow us to hear more here.

SBA HUBZone “Legacy Employee” Grace Period Ends: 3 Changes Affecting Recertification in 2022, February 14, 2022, Jon Williams
As part of sweeping changes to the HUBZone rules in the 2019 Final Rule, SBA implemented the so-called HUBZone “legacy employee” rule. This new rule was welcomed by HUBZone firms because it permits them to continue counting an employee as a HUBZone employee even after the employee moves out of a HUBZone, as long as certain requirements are satisfied. Specifically, to qualify as a HUBZone legacy employee, the rule requires that an employee (i) reside in a HUBZone for at least 180 days prior to the firm’s certification or recertification; (ii) continue to live in a HUBZone for at least 180 days immediately after the certification or recertification; and (iii) maintain continuous employment with the firm.

In 2021, SBA changed how it interpreted and applied the “legacy employee” rule. In FAQs, SBA placed limitations on how firms could take advantage of the legacy employee rule, depending on where the firm’s principal office was located and the status of the HUBZones in which the legacy employees resided. This sparked an outcry from HUBZone firms that relied in good faith on SBA’s prior...

Read Full Story: https://www.jdsupra.com/legalnews/weekly-update-for-government-4980219/