Performance accountability systems are increasingly utilized by state legislatures to hold community colleges more accountable for student outcomes and responsible spending through the linking of state funding to specific outputs. Through these actions, it is reasonable expect an emphasis on institutional performance to permeate into a community colleges' operations, decisions, and spending. Specifically, full-time faculty salaries are the largest and most significant expenditure. Salaries are determined by the selection of a labor market whereby employers compete for employees through competitive compensation. The purpose of this paper is to explore the feasibility of determining full-time community college faculty salaries using a performance based labor market. A multivariate analysis of variance (MANOVA) was conducted to compare beginning and average faculty salaries as determined from both the performance based labor market and the actual negotiated labor market used by community college districts. The findings of our research are discussed as they relate to employees and employers and the principles of distributive and procedural justice within a performance accountability framework.