Leased employee and controlled group related

This is possibly a stupid question but need to check.

Company A and Company B are CG.

Setting up a plan for Company A (sponsor) where Company B is an adopting employer.

Plan excludes leased employees.

Owner contacts and says, a Company A leases employees to Company B, the leased employees should not be excluded.

I read the section for leased employees under basic plan document and my understanding is that Company A is not a "leasing organization". I do not think it applies here as it is a different definition like a temp agency or something like that.

Besides as both entities are CG and no employees are excluded, who cares.

Am I missing something here?

Thanks

I agree with your assessment, not leased employees.

I also agree, but this situation made me think of a CG question that's was going around our group without much resolution recently.  If it's determined that both companies are members of a CG (or an ASG), does company B need to sign a joinder agreement/resolution adopting the plan? I was leaning more to the 'No' side, since B would already be required to have its eligible employees automatically covered by A's plan.  Am I off base on this?

Yes, they need to sign a joinder to be a part of the plan. If no joinder all eligible employees will still be part of all coverage testing with no benefits, if I understood your question correctly.

However, still need to check the plan document and see for CG/ASG purposes, all other companies (other than the sponsor) are automatically included in the plan even without a joinder agreement.