Leased Employee Question

[Guest bgiles]

Company A sponsors a 401(k) plan and owns 100% of company B. Company A has 25 full time employees and company B is a leasing organization that has 5 full time employees and roughly 300 temporary employees. The temps are paid by company B and perform services on a short term basis for other employers. Most if not all of the temps work less than 1000 hours for the year. In reviewing the AA the plan currently does not have an age or service requirement (immediate entry). The current administrator is supplied census data for all of the employees for company A & B (including temps), however the temps are not included on the tests. The only deduction I can come up with is that the current administrator is applying a 1000 hour requirement (which is not in the document) to keep the temps out of the plan which we do not agree with. Am I missing any other way that the temp employees could be kept out of the plan? Based on the fact that most temps only work short term assignments I can't imagine they would ever be considered employees of the recipient employers.