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There is a wide body of literature on the use of value added models to evaluate teachers; however, little is known about the use of classroom observations as a meaningful measure to evaluate teachers. Classroom observations have become a major part in teacher evaluations, which are being used to make high stakes decisions such as dismissal, tenure and compensation pay. Our study extends prior work by investigating whether individuals receive differentially lower or higher ratings due to their own characteristics and the characteristics of their students, rather than their instructional effectiveness. Using data from the Measures of Effective Teaching project, our preliminary results suggests policymakers consider adjusting observational ratings according to student and teacher characteristics to ensure meaningful evaluations.