The definition of AIDS, medical evidence regarding testing, and the ways AIDS is spread are discussed. The article reviews State and local laws, court decisions, and the response of the U.S. Department of Justice to the AIDS crisis. It concludes that much fear of AIDS is based on misunderstanding and lack of medical information. Legally, AIDS is likely to be considered a handicap, and employers will be prohibited from discriminating against AIDS victims. This means that personnel managers must constantly guard against discrimination based on AIDS-related disorders. Guidelines regarding personnel procedures cover screening questions that would not be considered discriminatory such as an individual's physical ability to perform the job, the ELISA test for AIDS, problems involved in terminating an employee with AIDS, employee education, and health insurance coverage for AIDS victims. 15 references.