diff --git a/awx/main/tests/functional/test_labels.py b/awx/main/tests/functional/test_labels.py
new file mode 100644
index 0000000000..fad1869d0e
--- /dev/null
+++ b/awx/main/tests/functional/test_labels.py
@@ -0,0 +1,37 @@
+import pytest
+
+# awx
+from awx.main.models import WorkflowJobTemplate
+from awx.api.versioning import reverse
+
+
+@pytest.mark.django_db
+def test_workflow_can_add_label(org_admin,organization, post):
+    # create workflow
+    wfjt = WorkflowJobTemplate.objects.create(name='test-wfjt')
+    wfjt.organization = organization
+    # create label
+    wfjt.admin_role.members.add(org_admin)
+    url = reverse('api:workflow_job_template_label_list', kwargs={'pk': wfjt.pk})
+    data = {'name': 'dev-label', 'organization': organization.id}
+    label = post(url, user=org_admin, data=data, expect=201)
+    assert label.data['name'] == 'dev-label'
+
+
+@pytest.mark.django_db
+def test_workflow_can_remove_label(org_admin, organization, post, get):
+    # create workflow
+    wfjt = WorkflowJobTemplate.objects.create(name='test-wfjt')
+    wfjt.organization = organization
+    # create label
+    wfjt.admin_role.members.add(org_admin)
+    label = wfjt.labels.create(name='dev-label', organization=organization)
+    # delete label
+    url = reverse('api:workflow_job_template_label_list', kwargs={'pk': wfjt.pk})
+    data = {
+        "id": label.pk,
+        "disassociate": True
+    }
+    post(url, data, org_admin, expect=204)
+    results = get(url, org_admin, expect=200)
+    assert results.data['count'] == 0