A couple options:
o Use setString() with the string representation of time.
pq.setString("timeParam", new java.sql.Time(System.currentTimeMillis).toString());
or
pq.setString("timeParam", "08:05:25");
o Use the sendTimeAsDateTime=true on the connection string. Example:
jdbc:sqlserver://localhost:1433;databaseName=thedatabasename;sendTimeAsDateTime=false