Case law suggests that AIDS will be protected as a handicap under the Federal 1973 Rehabilitation Act so long as the AIDS victim or carrier is 'otherwise qualified' to perform the functions of the job at issue. A defense to employment discrimination based upon the possibility of transmission of the disease and coworker safety is not likely to succeed, since all evidence indicates AIDS is not transmitted through casual contact. Claims of employer hardship due to excessive absenteeism by AIDS victims and the higher cost of employer health insurance are not likely to be successful defenses. Employers are expected by the courts to 'reasonably accommodate' a handicapped person in their work force. Employers, in conjunction with management personnel, should establish a well-defined policy regarding the employer's posture toward employees having or carrying the disease. Any employer allegation that the AIDS victim or carrier cannot be reasonably accommodated in the workplace should be well documented. States should enact specific legislation pointed toward the rights of the AIDS victim and carrier in the workplace. 148 footnotes.