After reviewing benefits of a physical fitness program, the report examines how to determine if such a regime is needed. It then discusses tests that should be included in medical assessments of participants, criteria for establishing safe and effective exercise guidelines, and administration. Also covered are employee agreements, fitness reports and evaluations. Case studies present the experience of three cities in designing fitness testing programs and working with employees to make them successful: Monrovia, Calif.; Glendale, Ariz., and Waterville, Maine. Issues considered include incentives, test selection, the testing process, program benefits, costs, and negative union reactions. Sample employee agreements, scoring sheets, and operating policies are appended. Tables, charts, and photographs.