Individuals with AIDS receive substantial protections under state and local handicap laws, the Federal Rehabilitation Act of 1973, the Employee Retirement Income Security Act of 1974, and other Federal laws. In addition, the pending Americans with Disabilities Act of 1989 will prohibit discrimination against disabled in employment, public services, public accommodations, and public transportation. Therefore, employers' AIDS policies should establish that employees with AIDS will be treated no differently from other employees with serious illnesses. In addition, requiring AIDS testing of job applicants or current employees is generally inadvisable. Moreover, the policy should address not only issues arising between management and employees but also issues that may arise between employees with AIDS and coworkers. Finally, employers should be sensitive to the devastating circumstances in which employees with AIDS find themselves and should establish fair and humane plans for dealing with them. 26 reference notes.