Section 641.585 - What is the employment status of SCSEP participants?(a) Participants are not considered Federal employees solely as a result of their participation in the SCSEP. (OAA § 504(a)).(b) Grantees must determine whether or not a participant qualifies as an employee of the grantee, sub-recipient, local project, or host agency, under applicable law. Responsibility for this determination rests with the grantee even when a Federal agency is a grantee or host agency.