In two separate studies, video-based tests of situational judgment were developed and validated against measures of performance for hourly service workers. In the first study, 684 employees were used to develop a test of retail associate judgment and 787 newly hired employees were used to cross-validate the instrument. In the second study, 412 current employees were used to develop a test of nursing home caregiver judgment and 148 newly hired caregivers were used to cross-validate this video-based test. In both studies, responses to video-based situational vignettes were empirically keyed against supervisory ratings of performance. The resulting keys produced uncorrected cross-validities in the low .20s. The video-based test scores were also found to be related to measures of cognitive ability and, to a lesser extent, experience. These results suggest that cognitive ability and possibly experience account for some but not all of the predictiveness of video-based situational tests. Video-based situational tests demonstrated score differences between Whites and non-Whites of roughly one-half a standard deviation, indicating that the use of such tests could produce adverse impact against non-Whites. In the second study, customer preferences regarding desired behavior were also used to develop a rational scoring key. This customer driven key was significantly related to performance (r= .33) in the cross-validation sample, demonstrating that customers' preferences can provide the basis for developing valid predictors. Potential benefits of video-based situational tests in selection and directions for future research are discussed.