A physiological monitoring system may use photonic signals at one or more wavelengths to determine physiological parameters. During monitoring, a physiological sensor may become improperly positioned, which may affect the physiological attenuation of the photonic signals, and accordingly a detected light signal. The detected light signal may include an ambient light component and a signal component corresponding to the one or more wavelengths of light. The physiological monitoring system may determine a reference characteristic based on the ambient light component, and compare the signal component with the ambient light component to determine a sensor-off condition.