Professional psychology has used the term impairment to describe trainees whose behavior does not meet minimum standards of professional competence, despite difficulties with the term that have been identified (L. Forrest, N. Elman, S. Gizara, & T. Vacha-Haase, 1999), and a few new terms that have been posited. Overlap with definitions of disability and impairment under the Americans With Disabilities Act (1990) create legal risk for training programs continuing to use the term impairment (C. A. Falender, C. J. Collins, & E. P. Shafranske, 2005). In this article, we review this and other problems with impairment, propose new terminology that captures three concepts ( problems, professional, and competence), and examine ways in which the new terminology is contextually grounded in emerging trends in psychology (e.g., the competency movement).