This study examined how members of functionally independent work groups (bank employees) evaluated behavioral deviance among in‐group and out‐group members. Members’ behavior was either modal (normative) or deviant in relation to workplace norms, and members were either likeable or unlikeable. Based on social identity theory (Tajfel & Turner, 1979) and on the black‐sheep effect (e.g., Marques & Paez, 1994), it was predicted that both unlikeability and deviance would result in more negative evaluations. It was also predicted that behavior that challenged prescriptive in‐group standards would result in relative derogation of in‐group targets compared to similar out‐group targets (the evaluative extremity effect). These hypotheses were supported. Discussion focuses on how evaluations of deviant group members help to preserve a positive sense of social identity. Practical implications of social deviance in the workplace are considered.