diff --git a/apis/actions.github.com/v1alpha1/autoscalingrunnerset_types.go b/apis/actions.github.com/v1alpha1/autoscalingrunnerset_types.go
index 8cff49c8..24ccc8e3 100644
--- a/apis/actions.github.com/v1alpha1/autoscalingrunnerset_types.go
+++ b/apis/actions.github.com/v1alpha1/autoscalingrunnerset_types.go
@@ -66,6 +66,9 @@ type AutoscalingRunnerSetSpec struct {
 	// +optional
 	RunnerScaleSetName string `json:"runnerScaleSetName,omitempty"`
 
+	// +optional
+	RunnerScaleSetLabels []string `json:"runnerScaleSetLabels,omitempty"`
+
 	// +optional
 	Proxy *ProxyConfig `json:"proxy,omitempty"`
 
diff --git a/apis/actions.github.com/v1alpha1/zz_generated.deepcopy.go b/apis/actions.github.com/v1alpha1/zz_generated.deepcopy.go
index 232d6f86..df2dabc8 100644
--- a/apis/actions.github.com/v1alpha1/zz_generated.deepcopy.go
+++ b/apis/actions.github.com/v1alpha1/zz_generated.deepcopy.go
@@ -227,6 +227,11 @@ func (in *AutoscalingRunnerSetList) DeepCopyObject() runtime.Object {
 // DeepCopyInto is an autogenerated deepcopy function, copying the receiver, writing into out. in must be non-nil.
 func (in *AutoscalingRunnerSetSpec) DeepCopyInto(out *AutoscalingRunnerSetSpec) {
 	*out = *in
+	if in.RunnerScaleSetLabels != nil {
+		in, out := &in.RunnerScaleSetLabels, &out.RunnerScaleSetLabels
+		*out = make([]string, len(*in))
+		copy(*out, *in)
+	}
 	if in.Proxy != nil {
 		in, out := &in.Proxy, &out.Proxy
 		*out = new(ProxyConfig)
diff --git a/charts/gha-runner-scale-set-controller-experimental/crds/actions.github.com_autoscalingrunnersets.yaml b/charts/gha-runner-scale-set-controller-experimental/crds/actions.github.com_autoscalingrunnersets.yaml
index a24d52bf..26f76125 100644
--- a/charts/gha-runner-scale-set-controller-experimental/crds/actions.github.com_autoscalingrunnersets.yaml
+++ b/charts/gha-runner-scale-set-controller-experimental/crds/actions.github.com_autoscalingrunnersets.yaml
@@ -8385,6 +8385,10 @@ spec:
                   type: object
                 runnerGroup:
                   type: string
+                runnerScaleSetLabels:
+                  items:
+                    type: string
+                  type: array
                 runnerScaleSetName:
                   type: string
                 template:
diff --git a/charts/gha-runner-scale-set-controller/crds/actions.github.com_autoscalingrunnersets.yaml b/charts/gha-runner-scale-set-controller/crds/actions.github.com_autoscalingrunnersets.yaml
index a24d52bf..26f76125 100644
--- a/charts/gha-runner-scale-set-controller/crds/actions.github.com_autoscalingrunnersets.yaml
+++ b/charts/gha-runner-scale-set-controller/crds/actions.github.com_autoscalingrunnersets.yaml
@@ -8385,6 +8385,10 @@ spec:
                   type: object
                 runnerGroup:
                   type: string
+                runnerScaleSetLabels:
+                  items:
+                    type: string
+                  type: array
                 runnerScaleSetName:
                   type: string
                 template:
diff --git a/charts/gha-runner-scale-set-experimental/templates/autoscalingrunnserset.yaml b/charts/gha-runner-scale-set-experimental/templates/autoscalingrunnserset.yaml
index 3eb031cd..4fbba467 100644
--- a/charts/gha-runner-scale-set-experimental/templates/autoscalingrunnserset.yaml
+++ b/charts/gha-runner-scale-set-experimental/templates/autoscalingrunnserset.yaml
@@ -83,6 +83,18 @@ spec:
   githubConfigSecret: {{ include "github-secret.name" . | quote }}
   runnerGroup: {{ .Values.scaleset.runnerGroup | quote }}
   runnerScaleSetName: {{ .Values.scaleset.name | quote }}
+  {{- if and .Values.scaleset.labels (kindIs "slice" .Values.scaleset.labels) }}
+  {{- range .Values.scaleset.labels }}
+  {{- if empty . }}
+  {{- fail "scaleset.labels contains an empty string, each label must be a non-empty string of less than 256 characters" }}
+  {{- end }}
+  {{- if ge (len .) 256 }}
+  {{- fail "scaleset.labels contains a label that is 256 characters or more, each label must be a non-empty string of less than 256 characters" }}
+  {{- end }}
+  {{- end }}
+  runnerScaleSetLabels:
+    {{- toYaml .Values.scaleset.labels | nindent 4 }}
+  {{- end }}
 
   {{- if .Values.githubServerTLS }}
   githubServerTLS:
diff --git a/charts/gha-runner-scale-set-experimental/tests/autoscaling_runner_set_scale_set_labels_test.yaml b/charts/gha-runner-scale-set-experimental/tests/autoscaling_runner_set_scale_set_labels_test.yaml
new file mode 100644
index 00000000..b8fb8d9e
--- /dev/null
+++ b/charts/gha-runner-scale-set-experimental/tests/autoscaling_runner_set_scale_set_labels_test.yaml
@@ -0,0 +1,58 @@
+suite: "AutoscalingRunnerSet scale set labels"
+templates:
+  - autoscalingrunnserset.yaml
+tests:
+  - it: should apply scaleset labels slice as runnerScaleSetLabels
+    set:
+      scaleset.name: "test"
+      scaleset.labels:
+        - "linux"
+        - "x64"
+      auth.url: "https://github.com/org"
+      auth.githubToken: "gh_token12345"
+      controllerServiceAccount.name: "arc"
+      controllerServiceAccount.namespace: "arc-system"
+    release:
+      name: "test-name"
+      namespace: "test-namespace"
+    asserts:
+      - equal:
+          path: spec.runnerScaleSetLabels[0]
+          value: "linux"
+      - equal:
+          path: spec.runnerScaleSetLabels[1]
+          value: "x64"
+
+  - it: should fail when a scaleset label is empty
+    set:
+      scaleset.name: "test"
+      scaleset.labels:
+        - "linux"
+        - ""
+      auth.url: "https://github.com/org"
+      auth.githubToken: "gh_token12345"
+      controllerServiceAccount.name: "arc"
+      controllerServiceAccount.namespace: "arc-system"
+    release:
+      name: "test-name"
+      namespace: "test-namespace"
+    asserts:
+      - failedTemplate:
+          errorMessage: "scaleset.labels contains an empty string, each label must be a non-empty string of less than 256 characters"
+
+  - it: should fail when a scaleset label is 256 characters or more
+    set:
+      scaleset.name: "test"
+      scaleset.labels:
+        - "linux"
+        - "aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa"
+      auth.url: "https://github.com/org"
+      auth.githubToken: "gh_token12345"
+      controllerServiceAccount.name: "arc"
+      controllerServiceAccount.namespace: "arc-system"
+    release:
+      name: "test-name"
+      namespace: "test-namespace"
+    asserts:
+      - failedTemplate:
+          errorMessage: "scaleset.labels contains a label that is 256 characters or more, each label must be a non-empty string of less than 256 characters"
\ No newline at end of file
diff --git a/charts/gha-runner-scale-set-experimental/values.yaml b/charts/gha-runner-scale-set-experimental/values.yaml
index 669230e2..4984251d 100644
--- a/charts/gha-runner-scale-set-experimental/values.yaml
+++ b/charts/gha-runner-scale-set-experimental/values.yaml
@@ -5,6 +5,10 @@ scaleset:
   # Name of the scaleset
   name: ""
   runnerGroup: "default"
+  # Labels are optional list of strings that will be applied to the scaleset
+  # allowing scaleset to be selected by the listener based on the labels specified in the workflow.
+  # https://docs.github.com/en/actions/how-tos/manage-runners/self-hosted-runners/apply-labels
+  labels: []
   ## minRunners is the min number of idle runners. The target number of runners created will be
   ## calculated as a sum of minRunners and the number of jobs assigned to the scale set.
   # minRunners: 0
diff --git a/charts/gha-runner-scale-set/templates/autoscalingrunnerset.yaml b/charts/gha-runner-scale-set/templates/autoscalingrunnerset.yaml
index a194e570..1a466d5b 100644
--- a/charts/gha-runner-scale-set/templates/autoscalingrunnerset.yaml
+++ b/charts/gha-runner-scale-set/templates/autoscalingrunnerset.yaml
@@ -75,6 +75,18 @@ spec:
   {{- with .Values.runnerScaleSetName }}
   runnerScaleSetName: {{ . }}
   {{- end }}
+  {{- if and .Values.scaleSetLabels (kindIs "slice" .Values.scaleSetLabels) }}
+  {{- range .Values.scaleSetLabels }}
+  {{- if empty . }}
+  {{- fail "scaleSetLabels contains an empty string, each label must be a non-empty string of less than 256 characters" }}
+  {{- end }}
+  {{- if ge (len .) 256 }}
+  {{- fail "scaleSetLabels contains a label that is 256 characters or more, each label must be a non-empty string of less than 256 characters" }}
+  {{- end }}
+  {{- end }}
+  runnerScaleSetLabels:
+    {{- toYaml .Values.scaleSetLabels | nindent 4 }}
+  {{- end }}
 
   {{- if .Values.githubServerTLS }}
   githubServerTLS:
diff --git a/charts/gha-runner-scale-set/tests/template_test.go b/charts/gha-runner-scale-set/tests/template_test.go
index 0e166f05..806b3c6f 100644
--- a/charts/gha-runner-scale-set/tests/template_test.go
+++ b/charts/gha-runner-scale-set/tests/template_test.go
@@ -474,6 +474,37 @@ func TestTemplateRenderedAutoScalingRunnerSet_RunnerScaleSetName(t *testing.T) {
 	assert.Equal(t, "ghcr.io/actions/actions-runner:latest", ars.Spec.Template.Spec.Containers[0].Image)
 }
 
+func TestTemplateRenderedAutoScalingRunnerSet_ScaleSetLabels(t *testing.T) {
+	t.Parallel()
+
+	// Path to the helm chart we will test
+	helmChartPath, err := filepath.Abs("../../gha-runner-scale-set")
+	require.NoError(t, err)
+
+	releaseName := "test-runners"
+	namespaceName := "test-" + strings.ToLower(random.UniqueId())
+
+	options := &helm.Options{
+		Logger: logger.Discard,
+		SetValues: map[string]string{
+			"githubConfigUrl":                    "https://github.com/actions",
+			"githubConfigSecret.github_token":    "gh_token12345",
+			"scaleSetLabels[0]":                  "linux",
+			"scaleSetLabels[1]":                  "x64",
+			"controllerServiceAccount.name":      "arc",
+			"controllerServiceAccount.namespace": "arc-system",
+		},
+		KubectlOptions: k8s.NewKubectlOptions("", "", namespaceName),
+	}
+
+	output := helm.RenderTemplate(t, options, helmChartPath, releaseName, []string{"templates/autoscalingrunnerset.yaml"})
+
+	var ars v1alpha1.AutoscalingRunnerSet
+	helm.UnmarshalK8SYaml(t, output, &ars)
+
+	assert.Equal(t, []string{"linux", "x64"}, ars.Spec.RunnerScaleSetLabels)
+}
+
 func TestTemplateRenderedAutoScalingRunnerSet_ProvideMetadata(t *testing.T) {
 	t.Parallel()
 
diff --git a/charts/gha-runner-scale-set/values.yaml b/charts/gha-runner-scale-set/values.yaml
index 0a78935b..4b4640cf 100644
--- a/charts/gha-runner-scale-set/values.yaml
+++ b/charts/gha-runner-scale-set/values.yaml
@@ -2,6 +2,8 @@
 ## ex: https://github.com/myorg/myrepo or https://github.com/myorg or https://github.com/enterprises/myenterprise
 githubConfigUrl: ""
 
+scaleSetLabels: []
+
 ## githubConfigSecret is the k8s secret information to use when authenticating via the GitHub API.
 ## You can choose to supply:
 ##   A) a PAT token,
diff --git a/config/crd/bases/actions.github.com_autoscalingrunnersets.yaml b/config/crd/bases/actions.github.com_autoscalingrunnersets.yaml
index a24d52bf..26f76125 100644
--- a/config/crd/bases/actions.github.com_autoscalingrunnersets.yaml
+++ b/config/crd/bases/actions.github.com_autoscalingrunnersets.yaml
@@ -8385,6 +8385,10 @@ spec:
                   type: object
                 runnerGroup:
                   type: string
+                runnerScaleSetLabels:
+                  items:
+                    type: string
+                  type: array
                 runnerScaleSetName:
                   type: string
                 template:
diff --git a/controllers/actions.github.com/autoscalingrunnerset_controller.go b/controllers/actions.github.com/autoscalingrunnerset_controller.go
index d32aa93b..3509de91 100644
--- a/controllers/actions.github.com/autoscalingrunnerset_controller.go
+++ b/controllers/actions.github.com/autoscalingrunnerset_controller.go
@@ -505,17 +505,35 @@ func (r *AutoscalingRunnerSetReconciler) createRunnerScaleSet(ctx context.Contex
 	}
 
 	if runnerScaleSet == nil {
+		labels := []scaleset.Label{
+			{
+				Name: autoscalingRunnerSet.Spec.RunnerScaleSetName,
+				Type: "System",
+			},
+		}
+
+		if labelCount := len(autoscalingRunnerSet.Spec.RunnerScaleSetLabels); labelCount > 0 {
+			unique := make(map[string]bool, labelCount+1)
+			unique[autoscalingRunnerSet.Spec.RunnerScaleSetName] = true
+
+			for _, label := range autoscalingRunnerSet.Spec.RunnerScaleSetLabels {
+				if _, exists := unique[label]; exists {
+					logger.Info("Duplicate label found. Skipping adding duplicate label to runner scale set", "label", label)
+					continue
+				}
+				labels = append(labels, scaleset.Label{
+					Name: label,
+					Type: "System",
+				})
+				unique[label] = true
+			}
+		}
 		runnerScaleSet, err = actionsClient.CreateRunnerScaleSet(
 			ctx,
 			&scaleset.RunnerScaleSet{
 				Name:          autoscalingRunnerSet.Spec.RunnerScaleSetName,
 				RunnerGroupID: runnerGroupID,
-				Labels: []scaleset.Label{
-					{
-						Name: autoscalingRunnerSet.Spec.RunnerScaleSetName,
-						Type: "System",
-					},
-				},
+				Labels:        labels,
 				RunnerSetting: scaleset.RunnerSetting{
 					DisableUpdate: true,
 				},
diff --git a/test/actions.github.com/anonymous-proxy-setup-v2.test.sh b/test/actions.github.com/anonymous-proxy-setup-v2.test.sh
index d8516ce4..696e1017 100755
--- a/test/actions.github.com/anonymous-proxy-setup-v2.test.sh
+++ b/test/actions.github.com/anonymous-proxy-setup-v2.test.sh
@@ -17,9 +17,6 @@ ARC_NAME="arc"
 ARC_NAMESPACE="arc-systems"
 
 function install_arc() {
-    echo "Creating namespace ${ARC_NAMESPACE}"
-    kubectl create namespace "${SCALE_SET_NAMESPACE}"
-
     echo "Installing ARC"
     helm install "${ARC_NAME}" \
         --namespace "${ARC_NAMESPACE}" \
diff --git a/test/actions.github.com/anonymous-proxy-setup.test.sh b/test/actions.github.com/anonymous-proxy-setup.test.sh
index 5c5cce34..ff45710c 100755
--- a/test/actions.github.com/anonymous-proxy-setup.test.sh
+++ b/test/actions.github.com/anonymous-proxy-setup.test.sh
@@ -17,9 +17,6 @@ ARC_NAME="arc"
 ARC_NAMESPACE="arc-systems"
 
 function install_arc() {
-    echo "Creating namespace ${ARC_NAMESPACE}"
-    kubectl create namespace "${SCALE_SET_NAMESPACE}"
-
     echo "Installing ARC"
     helm install "${ARC_NAME}" \
         --namespace "${ARC_NAMESPACE}" \
diff --git a/test/actions.github.com/auth-proxy-setup-v2.test.sh b/test/actions.github.com/auth-proxy-setup-v2.test.sh
index 2c8b0e7d..630c5954 100755
--- a/test/actions.github.com/auth-proxy-setup-v2.test.sh
+++ b/test/actions.github.com/auth-proxy-setup-v2.test.sh
@@ -22,9 +22,6 @@ function install_arc() {
         return 1
     }
 
-    echo "Creating namespace ${ARC_NAMESPACE}"
-    kubectl create namespace "${SCALE_SET_NAMESPACE}"
-
     echo "Installing ARC"
     helm install "${ARC_NAME}" \
         --namespace "${ARC_NAMESPACE}" \
diff --git a/test/actions.github.com/auth-proxy-setup.test.sh b/test/actions.github.com/auth-proxy-setup.test.sh
index f52a065d..179748de 100755
--- a/test/actions.github.com/auth-proxy-setup.test.sh
+++ b/test/actions.github.com/auth-proxy-setup.test.sh
@@ -22,9 +22,6 @@ function install_arc() {
         return 1
     }
 
-    echo "Creating namespace ${ARC_NAMESPACE}"
-    kubectl create namespace "${SCALE_SET_NAMESPACE}"
-
     echo "Installing ARC"
     helm install "${ARC_NAME}" \
         --namespace "${ARC_NAMESPACE}" \
diff --git a/test/actions.github.com/custom-label-setup-v2.test.sh b/test/actions.github.com/custom-label-setup-v2.test.sh
new file mode 100755
index 00000000..c6485520
--- /dev/null
+++ b/test/actions.github.com/custom-label-setup-v2.test.sh
@@ -0,0 +1,113 @@
+#!/bin/bash
+
+set -euo pipefail
+
+DIR="$(realpath "$(dirname "${BASH_SOURCE[0]}")")"
+
+ROOT_DIR="$(realpath "${DIR}/../..")"
+
+source "${DIR}/helper.sh"
+
+VERSION="$(chart_version "${ROOT_DIR}/charts/gha-runner-scale-set-controller-experimental/Chart.yaml")" || exit 1
+export VERSION
+
+SCALE_SET_NAME="custom-label-$(date +'%M%S')$(((RANDOM + 100) % 100 + 1))"
+SCALE_SET_NAMESPACE="arc-runners"
+SCALE_SET_LABEL="custom-$(date +'%s')${RANDOM}"
+WORKFLOW_FILE="arc-custom-label.yaml"
+ARC_NAME="arc"
+ARC_NAMESPACE="arc-systems"
+
+function install_arc() {
+    echo "Installing ARC"
+    helm install "${ARC_NAME}" \
+        --namespace "${ARC_NAMESPACE}" \
+        --create-namespace \
+        --set controller.manager.container.image="${IMAGE_NAME}:${IMAGE_TAG}" \
+        "${ROOT_DIR}/charts/gha-runner-scale-set-controller-experimental" \
+        --debug
+
+    if ! NAME="${ARC_NAME}" NAMESPACE="${ARC_NAMESPACE}" wait_for_arc; then
+        NAMESPACE="${ARC_NAMESPACE}" log_arc
+        return 1
+    fi
+}
+
+function install_scale_set() {
+    echo "Installing scale set ${SCALE_SET_NAMESPACE}/${SCALE_SET_NAME} with label ${SCALE_SET_LABEL}"
+    helm install "${SCALE_SET_NAME}" \
+        --namespace "${SCALE_SET_NAMESPACE}" \
+        --create-namespace \
+        --set controllerServiceAccount.name="${ARC_NAME}-gha-rs-controller" \
+        --set controllerServiceAccount.namespace="${ARC_NAMESPACE}" \
+        --set auth.url="https://github.com/${TARGET_ORG}/${TARGET_REPO}" \
+        --set auth.githubToken="${GITHUB_TOKEN}" \
+        --set scaleset.labels[0]="${SCALE_SET_LABEL}" \
+        "${ROOT_DIR}/charts/gha-runner-scale-set-experimental" \
+        --version="${VERSION}"
+
+    if ! NAME="${SCALE_SET_NAME}" NAMESPACE="${ARC_NAMESPACE}" wait_for_scale_set; then
+        NAMESPACE="${ARC_NAMESPACE}" log_arc
+        return 1
+    fi
+}
+
+function verify_scale_set_label() {
+    local actual_label
+    actual_label="$(kubectl get autoscalingrunnersets.actions.github.com -n "${SCALE_SET_NAMESPACE}" -l app.kubernetes.io/instance="${SCALE_SET_NAME}" -o jsonpath='{.items[0].spec.runnerScaleSetLabels[0]}')"
+    if [[ "${actual_label}" != "${SCALE_SET_LABEL}" ]]; then
+        echo "Expected scale set label '${SCALE_SET_LABEL}', got '${actual_label}'" >&2
+        return 1
+    fi
+}
+
+function run_custom_label_workflow() {
+    local repo="${TARGET_ORG}/${TARGET_REPO}"
+    local queue_time
+    queue_time="$(date -u +%FT%TZ)"
+
+    gh workflow run -R "${repo}" "${WORKFLOW_FILE}" \
+        -f scaleset-label="${SCALE_SET_LABEL}" || return 1
+
+    local count=0
+    local run_id=
+    while true; do
+        if [[ "${count}" -ge 12 ]]; then
+            echo "Timeout waiting for custom label workflow to start" >&2
+            return 1
+        fi
+
+        run_id="$(gh run list -R "${repo}" --workflow "${WORKFLOW_FILE}" --created ">${queue_time}" --json databaseId --jq '.[0].databaseId' | head -n1)"
+        if [[ -n "${run_id}" ]]; then
+            break
+        fi
+
+        sleep 5
+        count=$((count + 1))
+    done
+
+    gh run watch "${run_id}" -R "${repo}" --exit-status
+}
+
+function main() {
+    local failed=()
+
+    build_image
+    create_cluster
+
+    install_arc
+    install_scale_set
+    verify_scale_set_label || failed+=("verify_scale_set_label")
+
+    run_custom_label_workflow || failed+=("run_custom_label_workflow")
+
+    INSTALLATION_NAME="${SCALE_SET_NAME}" NAMESPACE="${SCALE_SET_NAMESPACE}" cleanup_scale_set || failed+=("cleanup_scale_set")
+
+    NAMESPACE="${ARC_NAMESPACE}" log_arc || failed+=("log_arc")
+
+    delete_cluster
+
+    print_results "${failed[@]}"
+}
+
+main
diff --git a/test/actions.github.com/custom-label-setup.test.sh b/test/actions.github.com/custom-label-setup.test.sh
new file mode 100755
index 00000000..8295ec3e
--- /dev/null
+++ b/test/actions.github.com/custom-label-setup.test.sh
@@ -0,0 +1,112 @@
+#!/bin/bash
+
+set -euo pipefail
+
+DIR="$(realpath "$(dirname "${BASH_SOURCE[0]}")")"
+
+ROOT_DIR="$(realpath "${DIR}/../..")"
+
+source "${DIR}/helper.sh"
+
+export VERSION="$(chart_version "${ROOT_DIR}/charts/gha-runner-scale-set-controller/Chart.yaml")"
+
+SCALE_SET_NAME="custom-label-$(date +'%M%S')$(((RANDOM + 100) % 100 + 1))"
+SCALE_SET_NAMESPACE="arc-runners"
+SCALE_SET_LABEL="custom-$(date +'%s')${RANDOM}"
+WORKFLOW_FILE="arc-custom-label.yaml"
+ARC_NAME="arc"
+ARC_NAMESPACE="arc-systems"
+
+function install_arc() {
+    echo "Installing ARC"
+    helm install "${ARC_NAME}" \
+        --namespace "${ARC_NAMESPACE}" \
+        --create-namespace \
+        --set image.repository="${IMAGE_NAME}" \
+        --set image.tag="${IMAGE_TAG}" \
+        "${ROOT_DIR}/charts/gha-runner-scale-set-controller" \
+        --debug
+
+    if ! NAME="${ARC_NAME}" NAMESPACE="${ARC_NAMESPACE}" wait_for_arc; then
+        NAMESPACE="${ARC_NAMESPACE}" log_arc
+        return 1
+    fi
+}
+
+function install_scale_set() {
+    echo "Installing scale set ${SCALE_SET_NAMESPACE}/${SCALE_SET_NAME} with label ${SCALE_SET_LABEL}"
+    helm install "${SCALE_SET_NAME}" \
+        --namespace "${SCALE_SET_NAMESPACE}" \
+        --create-namespace \
+        --set githubConfigUrl="https://github.com/${TARGET_ORG}/${TARGET_REPO}" \
+        --set githubConfigSecret.github_token="${GITHUB_TOKEN}" \
+        --set scaleSetLabels[0]="${SCALE_SET_LABEL}" \
+        "${ROOT_DIR}/charts/gha-runner-scale-set" \
+        --version="${VERSION}" \
+        --debug
+
+    if ! NAME="${SCALE_SET_NAME}" NAMESPACE="${ARC_NAMESPACE}" wait_for_scale_set; then
+        NAMESPACE="${ARC_NAMESPACE}" log_arc
+        return 1
+    fi
+}
+
+function verify_scale_set_label() {
+    local actual_label
+    actual_label="$(kubectl get autoscalingrunnersets.actions.github.com -n "${SCALE_SET_NAMESPACE}" -l app.kubernetes.io/instance="${SCALE_SET_NAME}" -o jsonpath='{.items[0].spec.runnerScaleSetLabels[0]}')"
+    if [[ "${actual_label}" != "${SCALE_SET_LABEL}" ]]; then
+        echo "Expected scale set label '${SCALE_SET_LABEL}', got '${actual_label}'" >&2
+        return 1
+    fi
+}
+
+function run_custom_label_workflow() {
+    local repo="${TARGET_ORG}/${TARGET_REPO}"
+    local queue_time
+    queue_time="$(date -u +%FT%TZ)"
+
+    gh workflow run -R "${repo}" "${WORKFLOW_FILE}" \
+        -f scaleset-label="${SCALE_SET_LABEL}" || return 1
+
+    local count=0
+    local run_id=
+    while true; do
+        if [[ "${count}" -ge 12 ]]; then
+            echo "Timeout waiting for custom label workflow to start" >&2
+            return 1
+        fi
+
+        run_id="$(gh run list -R "${repo}" --workflow "${WORKFLOW_FILE}" --created ">${queue_time}" --json databaseId --jq '.[0].databaseId' | head -n1)"
+        if [[ -n "${run_id}" ]]; then
+            break
+        fi
+
+        sleep 5
+        count=$((count + 1))
+    done
+
+    gh run watch "${run_id}" -R "${repo}" --exit-status
+}
+
+function main() {
+    local failed=()
+
+    build_image
+    create_cluster
+
+    install_arc
+    install_scale_set
+    verify_scale_set_label || failed+=("verify_scale_set_label")
+
+    run_custom_label_workflow || failed+=("run_custom_label_workflow")
+
+    INSTALLATION_NAME="${SCALE_SET_NAME}" NAMESPACE="${SCALE_SET_NAMESPACE}" cleanup_scale_set || failed+=("cleanup_scale_set")
+
+    NAMESPACE="${ARC_NAMESPACE}" log_arc || failed+=("log_arc")
+
+    delete_cluster
+
+    print_results "${failed[@]}"
+}
+
+main
diff --git a/test/actions.github.com/default-setup-v2.test.sh b/test/actions.github.com/default-setup-v2.test.sh
index a07dfd93..921165fd 100755
--- a/test/actions.github.com/default-setup-v2.test.sh
+++ b/test/actions.github.com/default-setup-v2.test.sh
@@ -18,9 +18,6 @@ ARC_NAME="arc"
 ARC_NAMESPACE="arc-systems"
 
 function install_arc() {
-    echo "Creating namespace ${ARC_NAMESPACE}"
-    kubectl create namespace "${SCALE_SET_NAMESPACE}"
-
     echo "Installing ARC"
     helm install "${ARC_NAME}" \
         --namespace "${ARC_NAMESPACE}" \
diff --git a/test/actions.github.com/default-setup.test.sh b/test/actions.github.com/default-setup.test.sh
index 7d8b24e3..9a92a260 100755
--- a/test/actions.github.com/default-setup.test.sh
+++ b/test/actions.github.com/default-setup.test.sh
@@ -17,9 +17,6 @@ ARC_NAME="arc"
 ARC_NAMESPACE="arc-systems"
 
 function install_arc() {
-    echo "Creating namespace ${ARC_NAMESPACE}"
-    kubectl create namespace "${SCALE_SET_NAMESPACE}"
-
     echo "Installing ARC"
     helm install "${ARC_NAME}" \
         --namespace "${ARC_NAMESPACE}" \
diff --git a/test/actions.github.com/dind-mode-setup-v2.test.sh b/test/actions.github.com/dind-mode-setup-v2.test.sh
index 7b2b800f..0e1a9ff6 100755
--- a/test/actions.github.com/dind-mode-setup-v2.test.sh
+++ b/test/actions.github.com/dind-mode-setup-v2.test.sh
@@ -17,9 +17,6 @@ ARC_NAME="arc"
 ARC_NAMESPACE="arc-systems"
 
 function install_arc() {
-    echo "Creating namespace ${ARC_NAMESPACE}"
-    kubectl create namespace "${SCALE_SET_NAMESPACE}"
-
     echo "Installing ARC"
     helm install "${ARC_NAME}" \
         --namespace "${ARC_NAMESPACE}" \
diff --git a/test/actions.github.com/dind-mode-setup.test.sh b/test/actions.github.com/dind-mode-setup.test.sh
index 19cf04a7..deb9b75d 100755
--- a/test/actions.github.com/dind-mode-setup.test.sh
+++ b/test/actions.github.com/dind-mode-setup.test.sh
@@ -17,9 +17,6 @@ ARC_NAME="arc"
 ARC_NAMESPACE="arc-systems"
 
 function install_arc() {
-    echo "Creating namespace ${ARC_NAMESPACE}"
-    kubectl create namespace "${SCALE_SET_NAMESPACE}"
-
     echo "Installing ARC"
     helm install "${ARC_NAME}" \
         --namespace "${ARC_NAMESPACE}" \
diff --git a/test/actions.github.com/kubernetes-mode-setup-v2.test.sh b/test/actions.github.com/kubernetes-mode-setup-v2.test.sh
index 0fa2a3c7..7a388296 100755
--- a/test/actions.github.com/kubernetes-mode-setup-v2.test.sh
+++ b/test/actions.github.com/kubernetes-mode-setup-v2.test.sh
@@ -22,9 +22,6 @@ function install_arc() {
         return 1
     }
 
-    echo "Creating namespace ${ARC_NAMESPACE}"
-    kubectl create namespace "${SCALE_SET_NAMESPACE}"
-
     echo "Installing ARC"
     helm install "${ARC_NAME}" \
         --namespace "${ARC_NAMESPACE}" \
diff --git a/test/actions.github.com/kubernetes-mode-setup.test.sh b/test/actions.github.com/kubernetes-mode-setup.test.sh
index 42697156..aa9b52b3 100755
--- a/test/actions.github.com/kubernetes-mode-setup.test.sh
+++ b/test/actions.github.com/kubernetes-mode-setup.test.sh
@@ -22,9 +22,6 @@ function install_arc() {
         return 1
     }
 
-    echo "Creating namespace ${ARC_NAMESPACE}"
-    kubectl create namespace "${SCALE_SET_NAMESPACE}"
-
     echo "Installing ARC"
     helm install "${ARC_NAME}" \
         --namespace "${ARC_NAMESPACE}" \
diff --git a/test/actions.github.com/single-namespace-setup-v2.test.sh b/test/actions.github.com/single-namespace-setup-v2.test.sh
index bdd8aa65..382953bd 100755
--- a/test/actions.github.com/single-namespace-setup-v2.test.sh
+++ b/test/actions.github.com/single-namespace-setup-v2.test.sh
@@ -17,9 +17,6 @@ ARC_NAME="arc"
 ARC_NAMESPACE="${SCALE_SET_NAMESPACE}"
 
 function install_arc() {
-    echo "Creating namespace ${ARC_NAMESPACE}"
-    kubectl create namespace "${SCALE_SET_NAMESPACE}"
-
     echo "Installing ARC"
     helm install "${ARC_NAME}" \
         --namespace "${ARC_NAMESPACE}" \
diff --git a/test/actions.github.com/single-namespace-setup.test.sh b/test/actions.github.com/single-namespace-setup.test.sh
index 0a28f525..836dfe74 100755
--- a/test/actions.github.com/single-namespace-setup.test.sh
+++ b/test/actions.github.com/single-namespace-setup.test.sh
@@ -17,9 +17,6 @@ ARC_NAME="arc"
 ARC_NAMESPACE="${SCALE_SET_NAMESPACE}"
 
 function install_arc() {
-    echo "Creating namespace ${ARC_NAMESPACE}"
-    kubectl create namespace "${SCALE_SET_NAMESPACE}"
-
     echo "Installing ARC"
     helm install "${ARC_NAME}" \
         --namespace "${ARC_NAMESPACE}" \
diff --git a/test/actions.github.com/update-strategy-v2.test.sh b/test/actions.github.com/update-strategy-v2.test.sh
index 2ac2f2ad..8d27a645 100755
--- a/test/actions.github.com/update-strategy-v2.test.sh
+++ b/test/actions.github.com/update-strategy-v2.test.sh
@@ -21,7 +21,6 @@ ARC_NAMESPACE="arc-systems"
 
 function install_arc() {
     echo "Installing ARC"
-
     helm install "${ARC_NAME}" \
         --namespace "${ARC_NAMESPACE}" \
         --create-namespace \
diff --git a/test/actions.github.com/update-strategy.test.sh b/test/actions.github.com/update-strategy.test.sh
index 2e966a67..7ddff6e9 100755
--- a/test/actions.github.com/update-strategy.test.sh
+++ b/test/actions.github.com/update-strategy.test.sh
@@ -21,7 +21,6 @@ ARC_NAMESPACE="arc-systems"
 
 function install_arc() {
     echo "Installing ARC"
-
     helm install "${ARC_NAME}" \
         --namespace "${ARC_NAMESPACE}" \
         --create-namespace \