An offshoot of the popular "lol" acronym, ILOLAW stands for "inappropriately laughing out loud at work." It is used to describe situations where something done, said, or witnessed causes you to laugh out loud so intensely while at your place of occupation that others take notice. Reactions from coworkers or bosses to an ILOLAW can be positive or negative.
The first "L" in ILOLAW can also mean "laughs," "laughed," or "laugh" depending on how ILOLAW is used in a sentence.
Next time we're GChatting at work, don't forward me your new favorite hysterical Youtube video...they always make me ILOLAW, and my boss says he'll fire me next time it happens.