A growing body of research showing that grade retention serves as an educationally low-quality placement has raised increasing concerns about whether the use of standardized tests in making decisions concerning grade retention conforms to current standards for appropriate and nondiscriminatory test use. This article examines the extent to which test-based grade retention policies comply with standards for fair and appropriate test use based on norms established by the professional testing community. The results of the investigation indicate that test-based retention policies potentially violate several of the professional standards. The points of violation are presented, and the implications for test-based retention policies are discussed.