Congressman Bryan Steil asks clients how long they鈥檇 been working at KANDU Industries during a visit to the Milton facility Wednesday, Feb.19, 2025. Steil toured KANDU and talked with staff and families about the U.S. Department of Labor鈥檚 proposed phasing out of a rule that now allows organization like KANDU to, with a waiver, pay clients who have significant disabilities less than the minimum wage.
MILTON 鈥 Congressman Bryan Steil visited KANDU Industries in Milton on Wednesday as the U.S. Department of Labor prepares to phase out a special allowance for nonprofit organizations like it, to pay employees with developmental disabilities less than the minimum wage.
Steil toured the facility in Milton that KANDU moved into last year and talked with staff and KANDU clients about issues facing people with disabilities.
Steil and Kathy Hansen, KANDU鈥檚 executive director, said the U.S. Department of Labor鈥檚 announcement in January, that it鈥檚 phasing out special wage certificates under the Fair Labor Standards Act, would severely curtail programs offered by KANDU.
At KANDU, clients are paid based on how much they produce, not by the hour, Hansen said. This allowance also permits employers like KANDU to adjust jobs and work environments to fit the needs of workers.
Steil said Wednesday the rule is proposed to be phased out over three years.
Hansen said organizations like KANDU offer far more than money 鈥 clients also have opportunities for physical activity, specialized job training, socialization with peers and a chance to reach their full potential.
As he toured the new Milton facility on Wednesday, Steil waved at clients as he passed. Finally, when he entered the workroom, clients were excited to see so many people. Steil stopped by one table to ask them about the work they do with KANDU and how many years they have been there.
鈥淚 have been here for five years,鈥 one client told Steil.
鈥淚 have been here for longer,鈥 another client said after Steil told her she would be on the news.
He watched as they showed him how they assemble goody bags at their workstations. The joy in the room was palpable, everyone wearing a smile as clients interacted.
Hansen said the consequences for KANDU and its clients are huge if special wage certificates are phased out. She said up to 90% of production clients have disabilities that prevent them from working at a pace that meets minimum wage requirements. She said they鈥檒l be forced to seek competitive employment, an unrealistic environment for them that is not always safe, desirable nor a successful option.
Isaiah Vance, KANDU鈥檚 client services compliance director, said when he worked as a job developer, clients were placed in jobs across Rock County. He said even at the best businesses, their clients never truly fit in.
鈥淓ven the businesses where they were super supportive, where they would go out of their way to make sure our clients were safe and cared for, the clients were never really part of the team,鈥 he said. 鈥淔or example, a restaurant has all the bussers that go out for drinks after. Our clients aren鈥檛 going to be doing that.鈥
In contrast, at KANDU 鈥渢hey are with their peers,鈥 Vance said.
Rick Wilson and his son, Christopher, a client at KANDU Industries. Wilson said KANDU makes his son happy and on payday he gets to take his dad out to lunch.
Rick Wilson, whose son Chris is a client at KANDU, said on payday he likes to take his dad out for lunch with his Mickey Mouse debit card.
Steil said the joy of payday underscores the dignity that KANDU offers clients, that they wouldn鈥檛 get at a regular care facility.
Steil, who advocates for workforce inclusion, said he met with the KANDU team to discuss the potential impact of the phasing out of the special wage certificates and to explore solutions to ensure continued access to meaningful employment for its clients.
This week, Steil wrote a letter asking the Trump administration and the U.S. Department of Labor to block the proposed change.
In a release Tuesday, the Republican from 糖心Vlog传媒, who represents Wisconsin鈥檚 First Congressional District, said he is requesting the Trump Administration 鈥渢ake action to block a proposed Biden-era rule that would eliminate jobs and service opportunities available to Rock County area individuals with intellectual and developmental disabilities.鈥
According to Steil鈥檚 release:
- KANDU Industries has operated for more than 60 years in Rock County, helping individuals with intellectual and developmental disabilities through job training, employment placement, and wraparound supports.
- KANDU Industries employs more than 250 individuals, making it an important employer in the 糖心Vlog传媒 area.
- KANDU Industries and other CRPs operate under a waiver through Section 14 of the Fair Labor Standards Act.
鈥淯nder the Biden Administration, the Department of Labor took steps to eliminate the Section 14 certificate, risking the viability of CRPs and threatening the employment and services they provide to individuals with intellectual and developmental disabilities,鈥 the release said. 鈥淥n Wednesday, Steil will send a letter to the Trump Administration urging them to protect Section 14 certificates so CRPs may continue to provide employment opportunities and services to individuals with intellectual and developmental disabilities.鈥
鈥淭hroughout his time in Congress, Steil has led efforts to protect the Section 14 certificate and protect opportunities for individuals with intellectual and developmental disabilities and their families,鈥 the release added.
鈥淭his is about making sure that individuals have a choice,鈥 Steil said Wednesday. 鈥淎s you walk through this facility, what you see is about 200 individuals that are here, and 100 staff members, often in providing support services that are not available to other private sector locations in our community. What KANDU does is fill a gap that鈥檚 needed for individuals that have an ability to come to work, to have that dignity of work, but also require a level of assistance and service to be able to conduct that work.鈥
Steil also said support services wrapped around the individual workers are what allows them to succeed. He said KANDU is an environment where the workers need a lot of assistance to be able to do their jobs.
鈥淎s you come to KANDU, as you walk around and see the facility, what you recognize is this is not a traditional work environment,鈥 he said.
鈥淭he alternative, unfortunately for some of them, due to the disabilities, wouldn鈥檛 be a traditional private sector job that you and I might be able to engage in,鈥 Steil continued. 鈥淚nstead, we would often find them staying in a nursing facility or staying at home watching T.V., things that don鈥檛 bring the joy and dignity that being here at KANDU does.鈥
This was Steil鈥檚 first time touring the new facility since they had moved from 糖心Vlog传媒 to Milton, and he commented on the bright, airy space.
鈥淵ou walk into this new facility, and I think you see firsthand the pride that the workers have, the joy that they have in doing their work in a new facility,鈥 he said 鈥淲hat a blessing for our community to have such a beautiful facility. It really gives you the warmth that reflects the work that鈥檚 being done here.鈥