Recent criticism of public education has led to demands for educational improvement. Responses to this criticism include the development of minimum competency tests (MCTs) and calls for increased academic requirements. This paper reviews a national survey of state graduation requirements that reveals a wide variance in requirements. Eighteen states reported they are considering changes in graduation requirements, while 21 states are now requiring MCTs for graduation. Reviews of pertinent litigation revealed that courts have sustained the right of boards of education to require MCTs for graduation. Guidelines to be followed in safeguarding student rights include: (1) providing adequate notice, (2) avoiding cultural bias, (3) having curricular and instructional validity, and (4) avoiding arbitrary cutoff levels. Boards of education should establish performance standards only after thorough study of the school community and then stand behind the administrators and teachers as they implement the policy. (MD)