Decision makers in education frequently identify tenure laws as a barrier to improving student achievement. Many principals believe statutes and case law adequately protect employees, and join others calling for modifications in tenure policies. The inadequate number of qualified applicants for principal positions is a national problem that requires addressing such causes as stress, accountability, and inadequate compensation. Research reveals principals play a key role in school reform. The reform efforts of districts frequently include increasing standards and expectations, making the principal's job more challenging and likely worsening current applicant-supply problems. The accountability movement has produced major changes in administrator tenure policies. Many states that ended principal tenure allow current administrators to retain their tenure status. In other states, the combination of contract laws and court rulings helps protect principals from arbitrary personnel actions. Many states with collective bargaining agreements for principals are moving to performance-based contract language without tenure protection, including districts in Connecticut, New York, Illinois, and Colorado. Principals must acquaint themselves with relevant contract law before entering negotiations for appointment, including state laws, school board policies, and case law. Administrators must also be prepared to negotiate specific working conditions and evaluation criteria reflecting the degree to which the districts provide resources required for success. (TEJ)