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In this paper, we use procedural justice theory to explore teachers’ reactions to incentive programs. We address two questions: 1) to what extent do teachers discuss issues related to procedural fairness in their reactions to incentive programs, and 2) what are implications of teachers’ perceptions of procedural fairness? This paper draws upon interviews conducted in six school districts in a U.S. state that are implementing performance-based compensation programs. We found that teachers discussed procedural justice issues in their reactions to incentive programs, particularly regarding procedures around eligibility for the incentive program. These justice perceptions had important implications, especially related to teachers’ support for the program. By taking teachers’ perceptions of fairness into account in the design of incentive programs, policy-makers may increase the likelihood of teacher buy-in.