Exclude One Eligible Employee

[Guest PBJ]

Employer has an elapsed time method of counting service so that employees become eligible for (k) deferrals after 3 months have gone by. Employer thought that it was hours counting and so employee needed to work a certain number of hours. One employee did not work that certain number but did have the 3 months of service. Employee does not make much money and would not have participated if given the opportunity, so I am told. Employer is reluctant to give the standard correction of 1/2 the ADP of the NHCEs for the missed year. Is there any other way to correct this error?

Any ideas would be great!!

Thank you!