22 C.F.R. § 513.605
(b) For purposes of this subpart—
(5) Employee means the employee of a grantee directly engaged in the performance of work under the grant, including:
(iii) Temporary personnel and consultants who are directly engaged in the performance of work under the grant and who are on the grantee's payroll.
This definition does not include workers not on the payroll of the grantee (e.g., volunteers, even if used to meet a matching requirement; consultants or independent contractors not on the payroll; or employees of subrecipients or subcontractors in covered workplaces);