This discussion on merit pay and career ladders focuses on legal questions about evaluation fairness. If the concern of teachers for fairness is heeded, policymakers must include in enabling legislation for teacher incentive programs procedures designed to minimize the impact of bias for or against particular individuals or particular teaching methods. Existing constitutional and legal requirements for due process, or for hearings, are not adequate, and new law is needed. Teacher incentives may be a good idea, but if they are based on the wrong criteria or poor evaluations, they will backfire. If a commitment to developing and paying for a good system is lacking, these programs should be tabled. Everything depends upon the development of criteria that truly measure good teaching, and a fair and workable evaluation system. (JD)