Researchers and practitioners often use standardized vocabulary tests such as the Peabody Picture Vocabulary Test-4 (PPVT-4; Dunn and Dunn, 2007) and its companion, the Expressive Vocabulary Test-2 (EVT-2; Williams, 2007), to assess English vocabulary skills as an indicator of children's school readiness. Despite their psychometric excellence in the norm sample, issues arise when standardized vocabulary tests are used to asses children from culturally, linguistically and ethnically diverse backgrounds (e.g., Spanish-speaking English language learners) or delayed in some manner. One of the biggest challenges is establishing the appropriateness of these measures with non-English or non-standard English speaking children as often they score one to two standard deviations below expected levels (e.g., Lonigan et al., 2013). This study re-examines the issues in analyzing the PPVT-4 and EVT-2 scores in a sample of 4-to-5-year-old low SES Hispanic preschool children who were part of a larger randomized clinical trial on the effects of a supplemental English shared-reading vocabulary curriculum (Pollard-Durodola et al., 2016). It was found that data exhibited strong floor effects and the presence of floor effects made it difficult to differentiate the invention group and the control group on their vocabulary growth in the intervention. A simulation study is then presented under the multilevel structural equation modeling (MSEM) framework and results revealed that in regular multilevel data analysis, ignoring floor effects in the outcome variables led to biased results in parameter estimates, standard error estimates, and significance tests. Our findings suggest caution in analyzing and interpreting scores of ethnically and culturally diverse children on standardized vocabulary tests (e.g., floor effects). It is recommended appropriate analytical methods that take into account floor effects in outcome variables should be considered. (author abstract)