The study was designed to test the validity of the American Academy of Ophthalmology and Otolaryngology’s (AAOO) 26‐dB average hearing threshold level at 500, 1000, and 2000 Hz as a predictor of hearing handicap. To investigate this criterion the performance of a normal‐hearing group was compared with that of two groups, categorized according to the AAOO [Trans. Am. Acad. Ophthal. Otolaryng.63, 236–238 (1959)] guidelines as having no handicap. The latter groups, however, had significant hearing losses in the frequencies above 2000 Hz. Mean hearing threshold levels for 3000, 4000, and 6000 Hz were 54 dB for group II and 63 dB for group III. Two kinds of speech stimuli were presented at an A‐weighted sound level of 60 dB in quiet and in three different levels of noise. The resulting speech recognition scores were significantly lower for the hearing‐impaired groups than for the normal‐hearing group on both kinds of speech materials and in all three noise conditions. Mean scores for group III were significantly lower than those of the normal‐hearing group, even in the quiet condition. Speech recognition scores showed significantly better correlation with hearing levels for frequency combinations including frequencies above 2000 Hz than for the 500‐, 1000‐, and 2000‐Hz combination. On the basis of these results the author recommends that the 26‐dB fence should be somewhat lower, and that frequencies above 2000 Hz should be included in any scheme for evaluating hearing handicap.