Amend plan to exclude employee group covered by the plan in the past - so excluded prospectively

Can a plan be amended say effective 1/1/2022 to exclude employees who previously met eligible and were covered under the plan?  Specifically the employer wants to exclude a defined class of employees, some of which worked 1000 hours in a past year and became eligible in a prior year.  Now the employer wants this group excluded even if they previously met plan entry. I'm thinking this is ok.  Coverage testing of course would have to be passed.  I believe anyone who EVER worked 1000 hours even if many years ago would be in the testing group.  That is unfortunate because they have many employees who worked 1000 hours in one year many years ago but I believe that will cause them to be in the coverate testing group.

Thank you in advance for your comments.

Tom

Yes, provided coverage passes, as you note. Also, as ESOP Guy pointed out in responding to another post, such an amendment could create a partial termination. So you kick these employees out of the plan prospectively but may have to fully vest them at 1/1/2022 in whatever account they have accumulated and then track those inactive accounts until there is a distributable event.

Thank you - good comment about vesting.  Hadn't thought of that.