Primary objective: Teacher evaluation is being revamped by policy-makers. The marginalized status of physical education has protected this subject area from reform for many decades, but in our current era of system-wide, data-based decision-making, physical education is no longer immune. Standardized and local testing, together with structured observation measures, are swiftly being mandated in the USA as required elements of teacher evaluation systems in an effort to improve school programs and student achievement. The purpose of this investigation was to document how this reform was initiated and the experiences of teachers, students and administrators, from three high school physical education programs, during initiation of this reform. Documenting how physical education programs respond to such reforms develops our understanding of top-down reform efforts and helps to identify conditions under which such reforms have the intended effect on physical education teachers and student learning in physical education. Theoretical Framework: Fullan's three phases of school change has been used to analyze and guide school change efforts in several subject areas including physical education. The phases are initiation, implementation and institutionalization. This study is situated primarily within the first phase of school change, the initiation phase. Methods and Procedures: This study took place over a 21-month period in 3 suburban school districts in a northeast metropolitan area of the USA. Interviews with district physical education administrators, high school physical education teachers and students were conducted. Field notes of physical education classes, informal interviews and related artifacts including pre- and post-physical education assessments were collected. To ensure trustworthiness, several steps were taken including member checks, triangulation and peer review. The data were analyzed to find common themes and patterns using the constant comparative method. Results: Several themes emerged: (1) changes in curriculum and assessment; (2) effect on administrators; (3) stakeholder apathy and (4) department collaboration. Conclusion: Changes, although minor, did take place in the wake of this top-down teacher reform; however, additional research needs to be completed to determine whether or not these changes are meaningful or long lasting.