PAM SSSD Allow Local Users

I've got a default SSSD configuration with PAM. I can login fine as any LDAP user. However, when I create a local user on a server:

adduser test1
passwd test1

and then try to login as that user I get the following error:

pam_sss(sshd:account): Access denied for user test1: 10 (User not known to the underlying authentication module)

/etc/nsswitch.conf

passwd:     files sss
shadow:     files sss
group:      files sss

#hosts:     db files nisplus nis dns
hosts:      files dns  

bootparams: nisplus [NOTFOUND=retu] files

ethers:     files
netmasks:   files
networks:   files
protocols:  files
rpc:        files
services:   files sss

netgroup:   files sss

publickey:  nisplus

automount:  files ldap
aliases:    files nisplus

sudoers: files sss

Files is listed as an alteate in nsswitch but it doesn't seem to be looking at the files to authenticate.

How can I allow login as a local user when SSSD is my authentication module?