Company policies and programs aimed at reducing smoking among employees have a number of other important benefits to employees and the company alike. Limiting or banning smoking helps create a safe and healthy workplace and may reduce direct health care costs, health and life insurance costs, employee absenteeism, costs associated with maintaining facilities and equipment, and the risk of fires. There is an increasing body of court cases and legal opinions indicating that employees have a common law right to a smoke-free work environment, that employers must accept some responsibility for discomfort and illness caused to employees by smoke in the workplace, and that employers are within their legal rights in banning smoking in the workplace and hiring only nonsmokers. Smoking policies can vary widely from company to company. Generally speaking, however, smoking policies generally have one or more of the following purposes: to protect equipment or property, to comply with laws or regulations, to ban smoking in specific areas, to ban smoking except in designated areas, to ban smoking entirely throughout an organization, or to preclude the hiring of smokers. (This report includes case studies of five companies with different types of smoking policies and two companies with successful smoking cessation programs, a list of 15 incentives that companies have offered employees to stop smoking, descriptions of six such incentive programs, and a region-by-region list of companies with various smoking policies.) (MN)