Under Federal law, AIDS is considered a handicap covered by antidiscrimination provisions. While only 2 States have similar laws, 33 States have stated they will accept AIDS-related discrimination complaints. Adverse action against an employee with AIDS can be taken only if it can be demonstrated that AIDS is a protected handicap, employers may not enquire if applicants or employees have AIDS and may not require testing, nor may they fire or refuse to hire an individual because of AIDS. Because AIDS is transmitted only be semen-to-blood or blood-to-blood exchange, there is no reason to isolate an employee with AIDS. Further, fear of contagion among coworkers or customers does not provide grounds for firing or refusing to hire an individual with AIDS. Education is recommended as a means of minimizing hysteria and reducing confrontations between employees with AIDS and other workers. Informed, humane, and fair treatment of issues related to AIDS by management is likely to result in arrangements in the best interests of the company and all employees.