After discussing AIDS from a broad historical and medical background, the article explores the issues surrounding blood testing for AIDS. A positive AIDS test can mean that a person has or will develop AIDS. It can also mean that an individual has been exposed to the virus, has repelled it, and continues to carry the antibodies in his blood. A positive test can also mean that, although the person has both AIDS antibodies and the live virus in his blood, he may or may not develop AIDS. Because such varied results are possible, the U.S. Department of Health and Human Services has issued guidelines recommending against routine blood screening and restrictions on employees who have AIDS or have been infected with the virus. The California legislature has passed a law intended to protect blood supplies from HTLV-III contamination by discouraging blood donations from certain high risk groups including AIDS sufferers. In California, AIDS blood tests cannot be used by insurers or employers to deny benefits. Wisconsin has also passed a law protecting the confidentiality of test results. State, federal and local anti-discrimination laws are also discussed. The rights of co-workers of AIDS employees are outlined. A comprehensive program to educate employers and employees about AIDS is proposed. 134 footnotes.