Recent research suggests that culturally responsive teaching (CRT) practices have the potential to increase student educational outcomes, as well as to reduce unnecessary or inappropriate placement referrals. Examination of the core components in CRT, teacher efficacy and cultural competence, is proposed to be a critical step to reduce unwarranted referrals of culturally and linguistically diverse students. However, there is limited empirical support for the relationship between CRT and instructional referrals, and even among existing studies there is inconsistency regarding the relation of these constructs. The purpose of this study is to examine teacher factors (i.e., teacher role, degree earned, years of teaching, ESL certification held, language proficiency and ethnicity) as a predictor of teacher competence, and the role these factors play in teachers’ referral decision making. To investigate these relationships, a national sample of elementary teachers (N = 258) completed a survey addressing their background, profession endorsements, sense of teaching efficiency, and the instructional decisions they would make in the scenarios presented. The results of this study revealed that teacher role (i.e., general, ESL or special educator) and ESL certification were important predictors of teacher competency. A statistically significant mean difference in teacher competency was found between teachers with and without ESL certification, indicating ESL certification as an important factor in deciding the level of teacher competency. Finally, teacher competency was found to improve teachers’ instructional decision making in scenarios in which the students displayed linguistic difficulties. The findings provide valuable insights to teacher training programs and other professional development entities regarding how to prepare educators to work more efficiently with ESL students.