Factors affecting the acceptance by the courts of teacher employment policies involving competency testing are examined in this report. Policies in 55 states and territories are considered, and the wide variations among the policies and court interpretations of them are noted. Particular attention is paid to constitutional provisions regarding equal protection of the law and due process, and to federal law regarding civil rights. The report recommends that tests be validated and used with caution. Relevant court cases are cited. A table listing the requirements, responsible agencies, and specific state legislation related to teacher certification in each state is appended. (PGD)