diff --git a/awx/ui_next/src/api/Base.js b/awx/ui_next/src/api/Base.js
index ef7c53460f..33e3626994 100644
--- a/awx/ui_next/src/api/Base.js
+++ b/awx/ui_next/src/api/Base.js
@@ -25,7 +25,9 @@ class Base {
   }
 
   read(params) {
-    return this.http.get(this.baseUrl, { params });
+    return this.http.get(this.baseUrl, {
+      params,
+    });
   }
 
   readDetail(id) {
diff --git a/awx/ui_next/src/api/index.js b/awx/ui_next/src/api/index.js
index 5e7b221c77..d295502309 100644
--- a/awx/ui_next/src/api/index.js
+++ b/awx/ui_next/src/api/index.js
@@ -3,6 +3,7 @@ import InstanceGroups from './models/InstanceGroups';
 import Inventories from './models/Inventories';
 import JobTemplates from './models/JobTemplates';
 import Jobs from './models/Jobs';
+import Labels from './models/Labels';
 import Me from './models/Me';
 import Organizations from './models/Organizations';
 import Root from './models/Root';
@@ -17,6 +18,7 @@ const InstanceGroupsAPI = new InstanceGroups();
 const InventoriesAPI = new Inventories();
 const JobTemplatesAPI = new JobTemplates();
 const JobsAPI = new Jobs();
+const LabelsAPI = new Labels();
 const MeAPI = new Me();
 const OrganizationsAPI = new Organizations();
 const RootAPI = new Root();
@@ -32,6 +34,7 @@ export {
   InventoriesAPI,
   JobTemplatesAPI,
   JobsAPI,
+  LabelsAPI,
   MeAPI,
   OrganizationsAPI,
   RootAPI,
diff --git a/awx/ui_next/src/api/models/JobTemplates.js b/awx/ui_next/src/api/models/JobTemplates.js
index de24e298a7..44eef5529b 100644
--- a/awx/ui_next/src/api/models/JobTemplates.js
+++ b/awx/ui_next/src/api/models/JobTemplates.js
@@ -8,6 +8,9 @@ class JobTemplates extends InstanceGroupsMixin(Base) {
 
     this.launch = this.launch.bind(this);
     this.readLaunch = this.readLaunch.bind(this);
+    this.associateLabel = this.associateLabel.bind(this);
+    this.disassociateLabel = this.disassociateLabel.bind(this);
+    this.generateLabel = this.generateLabel.bind(this);
   }
 
   launch(id, data) {
@@ -17,6 +20,18 @@ class JobTemplates extends InstanceGroupsMixin(Base) {
   readLaunch(id) {
     return this.http.get(`${this.baseUrl}${id}/launch/`);
   }
+
+  associateLabel(id, label) {
+    return this.http.post(`${this.baseUrl}${id}/labels/`, label);
+  }
+
+  disassociateLabel(id, label) {
+    return this.http.post(`${this.baseUrl}${id}/labels/`, label);
+  }
+
+  generateLabel(orgId, label) {
+    return this.http.post(`${this.baseUrl}${orgId}/labels/`, label);
+  }
 }
 
 export default JobTemplates;
diff --git a/awx/ui_next/src/api/models/Labels.js b/awx/ui_next/src/api/models/Labels.js
new file mode 100644
index 0000000000..0c0126b898
--- /dev/null
+++ b/awx/ui_next/src/api/models/Labels.js
@@ -0,0 +1,10 @@
+import Base from '../Base';
+
+class Labels extends Base {
+  constructor(http) {
+    super(http);
+    this.baseUrl = '/api/v2/labels/';
+  }
+}
+
+export default Labels;
diff --git a/awx/ui_next/src/components/MultiSelect/MultiSelect.jsx b/awx/ui_next/src/components/MultiSelect/MultiSelect.jsx
new file mode 100644
index 0000000000..ea5a701ccd
--- /dev/null
+++ b/awx/ui_next/src/components/MultiSelect/MultiSelect.jsx
@@ -0,0 +1,205 @@
+import React, { Component, Fragment } from 'react';
+import PropTypes from 'prop-types';
+import { withI18n } from '@lingui/react';
+import { withRouter } from 'react-router-dom';
+import { Chip, ChipGroup } from '@components/Chip';
+import {
+  Dropdown as PFDropdown,
+  DropdownItem,
+  TextInput as PFTextInput,
+  DropdownToggle,
+} from '@patternfly/react-core';
+import styled from 'styled-components';
+
+const InputGroup = styled.div`
+  border: 1px solid black;
+  margin-top: 2px;
+`;
+const TextInput = styled(PFTextInput)`
+  border: none;
+  width: 100%;
+  padding-left: 8px;
+`;
+const Dropdown = styled(PFDropdown)`
+  width: 100%;
+  .pf-c-dropdown__toggle.pf-m-plain {
+    display: none;
+  }
+  display: block;
+  .pf-c-dropdown__menu {
+    max-height: 200px;
+    overflow: scroll;
+  }
+  && button[disabled] {
+    color: var(--pf-c-button--m-plain--Color);
+    pointer-events: initial;
+    cursor: not-allowed;
+    color: var(--pf-global--disabled-color--200);
+  }
+`;
+
+class MultiSelect extends Component {
+  static propTypes = {
+    associatedItems: PropTypes.arrayOf(
+      PropTypes.shape({
+        name: PropTypes.string.isRequired,
+      })
+    ).isRequired,
+    onAddNewItem: PropTypes.func.isRequired,
+    onRemoveItem: PropTypes.func.isRequired,
+  };
+
+  constructor(props) {
+    super(props);
+    this.state = {
+      input: '',
+      chipItems: this.getInitialChipItems(),
+      isExpanded: false,
+    };
+    this.handleAddItem = this.handleAddItem.bind(this);
+    this.handleInputChange = this.handleInputChange.bind(this);
+    this.handleSelection = this.handleSelection.bind(this);
+    this.removeChip = this.removeChip.bind(this);
+    this.handleClick = this.handleClick.bind(this);
+  }
+
+  componentDidMount() {
+    document.addEventListener('mousedown', this.handleClick, false);
+  }
+
+  componentWillUnmount() {
+    document.removeEventListener('mousedown', this.handleClick, false);
+  }
+
+  getInitialChipItems() {
+    const { associatedItems } = this.props;
+    return associatedItems.map(item => ({
+      name: item.name,
+      id: item.id,
+      organization: item.organization,
+    }));
+  }
+
+  handleClick(e, option) {
+    if (this.node && this.node.contains(e.target)) {
+      if (option) {
+        this.handleSelection(e, option);
+      }
+    } else {
+      this.setState({ isExpanded: false });
+    }
+  }
+
+  handleSelection(e, item) {
+    const { chipItems } = this.state;
+    const { onAddNewItem } = this.props;
+    e.preventDefault();
+
+    this.setState({
+      chipItems: chipItems.concat({ name: item.name, id: item.id }),
+      isExpanded: false,
+    });
+    onAddNewItem(item);
+  }
+
+  handleAddItem(event) {
+    const { input, chipItems } = this.state;
+    const { onAddNewItem } = this.props;
+    const newChip = { name: input, id: Math.random() };
+    if (event.key !== 'Tab') {
+      return;
+    }
+    this.setState({
+      chipItems: chipItems.concat(newChip),
+      isExpanded: false,
+      input: '',
+    });
+
+    onAddNewItem(input);
+  }
+
+  handleInputChange(e) {
+    this.setState({ input: e, isExpanded: true });
+  }
+
+  removeChip(e, item) {
+    const { onRemoveItem } = this.props;
+    const { chipItems } = this.state;
+    const chips = chipItems.filter(chip => chip.id !== item.id);
+
+    this.setState({ chipItems: chips });
+    onRemoveItem(item);
+
+    e.preventDefault();
+  }
+
+  render() {
+    const { options } = this.props;
+    const { chipItems, input, isExpanded } = this.state;
+
+    const list = options.map(option => (
+      <Fragment key={option.id}>
+        {option.name.includes(input) ? (
+          <DropdownItem
+            component="button"
+            isDisabled={chipItems.some(item => item.id === option.id)}
+            value={option.name}
+            onClick={e => {
+              this.handleClick(e, option);
+            }}
+          >
+            {option.name}
+          </DropdownItem>
+        ) : null}
+      </Fragment>
+    ));
+
+    const chips = (
+      <ChipGroup>
+        {chipItems &&
+          chipItems.map(item => (
+            <Chip
+              key={item.id}
+              onClick={e => {
+                this.removeChip(e, item);
+              }}
+            >
+              {item.name}
+            </Chip>
+          ))}
+      </ChipGroup>
+    );
+    return (
+      <Fragment>
+        <InputGroup>
+          <div
+            ref={node => {
+              this.node = node;
+            }}
+          >
+            <TextInput
+              type="text"
+              aria-label="labels"
+              value={input}
+              onClick={() => this.setState({ isExpanded: true })}
+              onChange={this.handleInputChange}
+              onKeyDown={this.handleAddItem}
+            />
+            <Dropdown
+              type="button"
+              isPlain
+              value={chipItems}
+              toggle={<DropdownToggle isPlain>Labels</DropdownToggle>}
+              // Above is not rendered but is a required prop from Patternfly
+              isOpen={isExpanded}
+              dropdownItems={list}
+            />
+          </div>
+          <div css="margin: 10px">{chips}</div>
+        </InputGroup>
+      </Fragment>
+    );
+  }
+}
+export { MultiSelect as _MultiSelect };
+export default withI18n()(withRouter(MultiSelect));
diff --git a/awx/ui_next/src/components/MultiSelect/MultiSelect.test.jsx b/awx/ui_next/src/components/MultiSelect/MultiSelect.test.jsx
new file mode 100644
index 0000000000..422baacb84
--- /dev/null
+++ b/awx/ui_next/src/components/MultiSelect/MultiSelect.test.jsx
@@ -0,0 +1,93 @@
+import React from 'react';
+import { sleep } from '@testUtils/testUtils';
+import MultiSelect, { _MultiSelect } from './MultiSelect';
+import { mountWithContexts } from '../../../testUtils/enzymeHelpers';
+
+describe('<MultiSelect />', () => {
+  const associatedItems = [
+    { name: 'Foo', id: 1, organization: 1 },
+    { name: 'Bar', id: 2, organization: 1 },
+  ];
+  const options = [{ name: 'Angry', id: 3 }, { name: 'Potato', id: 4 }];
+
+  test('Initially render successfully', () => {
+    const getInitialChipItems = jest.spyOn(
+      _MultiSelect.prototype,
+      'getInitialChipItems'
+    );
+    const wrapper = mountWithContexts(
+      <MultiSelect
+        onAddNewItem={jest.fn()}
+        onRemoveItem={jest.fn()}
+        associatedItems={associatedItems}
+        options={options}
+      />
+    );
+    const component = wrapper.find('MultiSelect');
+
+    expect(getInitialChipItems).toBeCalled();
+    expect(component.state().chipItems.length).toBe(2);
+  });
+  test('handleSelection add item to chipItems', async () => {
+    const wrapper = mountWithContexts(
+      <MultiSelect
+        onAddNewItem={jest.fn()}
+        onRemoveItem={jest.fn()}
+        associatedItems={associatedItems}
+        options={options}
+      />
+    );
+    const component = wrapper.find('MultiSelect');
+    component
+      .find('input[aria-label="labels"]')
+      .simulate('keydown', { key: 'Tab' });
+    component.update();
+    await sleep(1);
+    expect(component.state().chipItems.length).toBe(3);
+  });
+  test('handleAddItem adds a chip only when Tab is pressed', () => {
+    const onAddNewItem = jest.fn();
+    const wrapper = mountWithContexts(
+      <MultiSelect
+        onAddNewItem={onAddNewItem}
+        onRemoveItem={jest.fn()}
+        associatedItems={associatedItems}
+        options={options}
+      />
+    );
+    const event = {
+      preventDefault: () => {},
+      key: 'Tab',
+    };
+    const component = wrapper.find('MultiSelect');
+
+    component.setState({ input: 'newLabel' });
+    component.update();
+    component.instance().handleAddItem(event);
+    expect(component.state().chipItems.length).toBe(3);
+    expect(component.state().input.length).toBe(0);
+    expect(component.state().isExpanded).toBe(false);
+    expect(onAddNewItem).toBeCalled();
+  });
+  test('removeChip removes chip properly', () => {
+    const onRemoveItem = jest.fn();
+
+    const wrapper = mountWithContexts(
+      <MultiSelect
+        onAddNewItem={jest.fn()}
+        onRemoveItem={onRemoveItem}
+        associatedItems={associatedItems}
+        options={options}
+      />
+    );
+    const event = {
+      preventDefault: () => {},
+    };
+    const component = wrapper.find('MultiSelect');
+    component
+      .instance()
+      .removeChip(event, { name: 'Foo', id: 1, organization: 1 });
+    expect(component.state().chipItems.length).toBe(1);
+    expect(onRemoveItem).toBeCalled();
+  });
+});
diff --git a/awx/ui_next/src/components/MultiSelect/index.js b/awx/ui_next/src/components/MultiSelect/index.js
new file mode 100644
index 0000000000..8cda42c7cb
--- /dev/null
+++ b/awx/ui_next/src/components/MultiSelect/index.js
@@ -0,0 +1 @@
+export { default } from './MultiSelect';
diff --git a/awx/ui_next/src/screens/Template/JobTemplateAdd/JobTemplateAdd.test.jsx b/awx/ui_next/src/screens/Template/JobTemplateAdd/JobTemplateAdd.test.jsx
index 859e327663..e9e579b673 100644
--- a/awx/ui_next/src/screens/Template/JobTemplateAdd/JobTemplateAdd.test.jsx
+++ b/awx/ui_next/src/screens/Template/JobTemplateAdd/JobTemplateAdd.test.jsx
@@ -13,6 +13,11 @@ describe('<JobTemplateAdd />', () => {
     name: '',
     playbook: '',
     project: '',
+    summary_fields: {
+      user_capabilities: {
+        edit: true,
+      },
+    },
   };
 
   afterEach(() => {
diff --git a/awx/ui_next/src/screens/Template/JobTemplateEdit/JobTemplateEdit.jsx b/awx/ui_next/src/screens/Template/JobTemplateEdit/JobTemplateEdit.jsx
index c488b3c8f6..655ececfe5 100644
--- a/awx/ui_next/src/screens/Template/JobTemplateEdit/JobTemplateEdit.jsx
+++ b/awx/ui_next/src/screens/Template/JobTemplateEdit/JobTemplateEdit.jsx
@@ -21,14 +21,28 @@ class JobTemplateEdit extends Component {
     this.handleSubmit = this.handleSubmit.bind(this);
   }
 
-  async handleSubmit(values) {
+  async handleSubmit(values, newLabels = [], removedLabels = []) {
     const {
       template: { id, type },
       history,
     } = this.props;
 
+    const disassociatedLabels = removedLabels.forEach(removedLabel =>
+      JobTemplatesAPI.disassociateLabel(id, removedLabel)
+    );
+    const associatedLabels = newLabels
+      .filter(newLabel => !newLabel.organization)
+      .forEach(newLabel => JobTemplatesAPI.associateLabel(id, newLabel));
+    const generatedLabels = newLabels
+      .filter(newLabel => newLabel.organization)
+      .forEach(newLabel => JobTemplatesAPI.generateLabel(id, newLabel));
     try {
-      await JobTemplatesAPI.update(id, { ...values });
+      await Promise.all([
+        JobTemplatesAPI.update(id, { ...values }),
+        disassociatedLabels,
+        associatedLabels,
+        generatedLabels,
+      ]);
       history.push(`/templates/${type}/${id}/details`);
     } catch (error) {
       this.setState({ error });
diff --git a/awx/ui_next/src/screens/Template/JobTemplateEdit/JobTemplateEdit.test.jsx b/awx/ui_next/src/screens/Template/JobTemplateEdit/JobTemplateEdit.test.jsx
index 35900e81a9..1448887e95 100644
--- a/awx/ui_next/src/screens/Template/JobTemplateEdit/JobTemplateEdit.test.jsx
+++ b/awx/ui_next/src/screens/Template/JobTemplateEdit/JobTemplateEdit.test.jsx
@@ -19,6 +19,9 @@ describe('<JobTemplateEdit />', () => {
       user_capabilities: {
         edit: true,
       },
+      labels: {
+        results: [{ name: 'Sushi', id: 1 }, { name: 'Major', id: 2 }],
+      },
     },
   };
 
@@ -33,9 +36,26 @@ describe('<JobTemplateEdit />', () => {
       description: 'new description',
       job_type: 'check',
     };
+    const newLabels = [
+      { associate: true, id: 3 },
+      { associate: true, id: 3 },
+      { name: 'Mapel', organization: 1 },
+      { name: 'Tree', organization: 1 },
+    ];
+    const removedLabels = [
+      { disassociate: true, id: 1 },
+      { disassociate: true, id: 2 },
+    ];
 
-    wrapper.find('JobTemplateForm').prop('handleSubmit')(updatedTemplateData);
+    wrapper.find('JobTemplateForm').prop('handleSubmit')(
+      updatedTemplateData,
+      newLabels,
+      removedLabels
+    );
     expect(JobTemplatesAPI.update).toHaveBeenCalledWith(1, updatedTemplateData);
+    expect(JobTemplatesAPI.disassociateLabel).toHaveBeenCalledTimes(2);
+    expect(JobTemplatesAPI.associateLabel).toHaveBeenCalledTimes(2);
+    expect(JobTemplatesAPI.generateLabel).toHaveBeenCalledTimes(2);
   });
 
   test('should navigate to job template detail when cancel is clicked', () => {
diff --git a/awx/ui_next/src/screens/Template/shared/JobTemplateForm.jsx b/awx/ui_next/src/screens/Template/shared/JobTemplateForm.jsx
index daebb1770f..fc2ff53556 100644
--- a/awx/ui_next/src/screens/Template/shared/JobTemplateForm.jsx
+++ b/awx/ui_next/src/screens/Template/shared/JobTemplateForm.jsx
@@ -4,9 +4,17 @@ import { withRouter } from 'react-router-dom';
 import { withI18n } from '@lingui/react';
 import { t } from '@lingui/macro';
 import { Formik, Field } from 'formik';
-import { Form, FormGroup, Tooltip } from '@patternfly/react-core';
+import {
+  Form,
+  FormGroup,
+  Tooltip,
+  PageSection,
+  Card,
+} from '@patternfly/react-core';
 import { QuestionCircleIcon as PFQuestionCircleIcon } from '@patternfly/react-icons';
+import ContentError from '@components/ContentError';
 import AnsibleSelect from '@components/AnsibleSelect';
+import MultiSelect from '@components/MultiSelect';
 import FormActionGroup from '@components/FormActionGroup';
 import FormField from '@components/FormField';
 import FormRow from '@components/FormRow';
@@ -14,10 +22,16 @@ import { required } from '@util/validators';
 import styled from 'styled-components';
 import { JobTemplate } from '@types';
 import InventoriesLookup from './InventoriesLookup';
+import { LabelsAPI } from '@api';
 
 const QuestionCircleIcon = styled(PFQuestionCircleIcon)`
   margin-left: 10px;
 `;
+const QSConfig = {
+  page: 1,
+  page_size: 200,
+  order_by: 'name',
+};
 
 class JobTemplateForm extends Component {
   static propTypes = {
@@ -36,22 +50,121 @@ class JobTemplateForm extends Component {
       playbook: '',
       summary_fields: {
         inventory: null,
+        labels: { results: [] },
       },
     },
   };
 
   constructor(props) {
     super(props);
-
     this.state = {
+      hasContentLoading: true,
+      contentError: false,
+      loadedLabels: [],
+      newLabels: [],
+      removedLabels: [],
       inventory: props.template.summary_fields.inventory,
     };
+    this.handleNewLabel = this.handleNewLabel.bind(this);
+    this.loadLabels = this.loadLabels.bind(this);
+    this.removeLabel = this.removeLabel.bind(this);
+  }
+
+  componentDidMount() {
+    this.loadLabels(QSConfig);
+  }
+
+  // The function below assumes that the user has no more than 400
+  // labels. For the vast majority of users this will be more thans
+  // enough.This can be updated to allow more than 400 labels if we
+  // decide it is necessary.
+
+  async loadLabels(QueryConfig) {
+    this.setState({ contentError: null, hasContentLoading: true });
+    let loadedLabels;
+    try {
+      const { data } = await LabelsAPI.read(QueryConfig);
+      loadedLabels = [...data.results];
+      if (data.next && data.next.includes('page=2')) {
+        const {
+          data: { results },
+        } = await LabelsAPI.read({
+          page: 2,
+          page_size: 200,
+          order_by: 'name',
+        });
+        loadedLabels = loadedLabels.concat(results);
+      }
+      this.setState({ loadedLabels });
+    } catch (err) {
+      this.setState({ contentError: err });
+    } finally {
+      this.setState({ hasContentLoading: false });
+    }
+  }
+
+  handleNewLabel(label) {
+    const { newLabels } = this.state;
+    const { template } = this.props;
+    const isIncluded = newLabels.some(newLabel => newLabel.name === label.name);
+    if (isIncluded) {
+      const filteredLabels = newLabels.filter(
+        newLabel => newLabel.name !== label
+      );
+      this.setState({ newLabels: filteredLabels });
+    } else if (typeof label === 'string') {
+      this.setState({
+        newLabels: [
+          ...newLabels,
+          {
+            name: label,
+            organization: template.summary_fields.inventory.organization_id,
+          },
+        ],
+      });
+    } else {
+      this.setState({
+        newLabels: [
+          ...newLabels,
+          { name: label.name, associate: true, id: label.id },
+        ],
+      });
+    }
+  }
+
+  removeLabel(label) {
+    const { removedLabels, newLabels } = this.state;
+    const { template } = this.props;
+
+    const isAssociatedLabel = template.summary_fields.labels.results.some(
+      tempLabel => tempLabel.id === label.id
+    );
+
+    if (isAssociatedLabel) {
+      this.setState({
+        removedLabels: removedLabels.concat({
+          disassociate: true,
+          id: label.id,
+        }),
+      });
+    } else {
+      const filteredLabels = newLabels.filter(
+        newLabel => newLabel.name !== label.name
+      );
+      this.setState({ newLabels: filteredLabels });
+    }
   }
 
   render() {
+    const {
+      loadedLabels,
+      contentError,
+      hasContentLoading,
+      inventory,
+      newLabels,
+      removedLabels,
+    } = this.state;
     const { handleCancel, handleSubmit, i18n, template } = this.props;
-    const { inventory } = this.state;
-
     const jobTypeOptions = [
       {
         value: '',
@@ -68,6 +181,15 @@ class JobTemplateForm extends Component {
       },
     ];
 
+    if (!hasContentLoading && contentError) {
+      return (
+        <PageSection>
+          <Card className="awx-c-card">
+            <ContentError error={contentError} />
+          </Card>
+        </PageSection>
+      );
+    }
     return (
       <Formik
         initialValues={{
@@ -77,8 +199,11 @@ class JobTemplateForm extends Component {
           inventory: template.inventory,
           project: template.project,
           playbook: template.playbook,
+          labels: template.summary_fields.labels.results,
+        }}
+        onSubmit={values => {
+          handleSubmit(values, newLabels, removedLabels);
         }}
-        onSubmit={handleSubmit}
         render={formik => (
           <Form autoComplete="off" onSubmit={formik.handleSubmit}>
             <FormRow>
@@ -156,6 +281,24 @@ class JobTemplateForm extends Component {
                 validate={required(null, i18n)}
               />
             </FormRow>
+            <FormRow>
+              <FormGroup label={i18n._(t`Labels`)} fieldId="template-labels">
+                <Tooltip
+                  position="right"
+                  content={i18n._(
+                    t`Optional labels that describe this job template, such as 'dev' or 'test'. Labels can be used to group and filter job templates and completed jobs.`
+                  )}
+                >
+                  <QuestionCircleIcon />
+                </Tooltip>
+                <MultiSelect
+                  onAddNewItem={this.handleNewLabel}
+                  onRemoveItem={this.removeLabel}
+                  associatedItems={template.summary_fields.labels.results}
+                  options={loadedLabels}
+                />
+              </FormGroup>
+            </FormRow>
             <FormActionGroup
               onCancel={handleCancel}
               onSubmit={formik.handleSubmit}
@@ -166,5 +309,5 @@ class JobTemplateForm extends Component {
     );
   }
 }
-
+export { JobTemplateForm as _JobTemplateForm };
 export default withI18n()(withRouter(JobTemplateForm));
diff --git a/awx/ui_next/src/screens/Template/shared/JobTemplateForm.test.jsx b/awx/ui_next/src/screens/Template/shared/JobTemplateForm.test.jsx
index 2aaae29d12..4fb2223d7f 100644
--- a/awx/ui_next/src/screens/Template/shared/JobTemplateForm.test.jsx
+++ b/awx/ui_next/src/screens/Template/shared/JobTemplateForm.test.jsx
@@ -1,7 +1,8 @@
 import React from 'react';
 import { mountWithContexts } from '@testUtils/enzymeHelpers';
 import { sleep } from '@testUtils/testUtils';
-import JobTemplateForm from './JobTemplateForm';
+import JobTemplateForm, { _JobTemplateForm } from './JobTemplateForm';
+import { LabelsAPI } from '@api';
 
 jest.mock('@api');
 
@@ -19,22 +20,32 @@ describe('<JobTemplateForm />', () => {
       inventory: {
         id: 2,
         name: 'foo',
+        organization_id: 1,
       },
+      labels: { results: [{ name: 'Sushi', id: 1 }, { name: 'Major', id: 2 }] },
     },
   };
+  beforeEach(() => {
+    LabelsAPI.read.mockReturnValue({
+      data: mockData.summary_fields.labels,
+    });
+  });
 
   afterEach(() => {
     jest.clearAllMocks();
   });
 
   test('initially renders successfully', () => {
-    mountWithContexts(
+    const wrapper = mountWithContexts(
       <JobTemplateForm
         template={mockData}
         handleSubmit={jest.fn()}
         handleCancel={jest.fn()}
       />
     );
+    const component = wrapper.find('ChipGroup');
+    expect(LabelsAPI.read).toHaveBeenCalled();
+    expect(component.find('span#pf-random-id-1').text()).toEqual('Sushi');
   });
 
   test('should update form values on input changes', async () => {
@@ -103,4 +114,53 @@ describe('<JobTemplateForm />', () => {
     wrapper.find('button[aria-label="Cancel"]').prop('onClick')();
     expect(handleCancel).toBeCalled();
   });
+
+  test('handleNewLabel should arrange new labels properly', async () => {
+    const handleNewLabel = jest.spyOn(
+      _JobTemplateForm.prototype,
+      'handleNewLabel'
+    );
+    const event = { key: 'Tab' };
+    const wrapper = mountWithContexts(
+      <JobTemplateForm
+        template={mockData}
+        handleSubmit={jest.fn()}
+        handleCancel={jest.fn()}
+      />
+    );
+    const multiSelect = wrapper.find('MultiSelect');
+    const component = wrapper.find('JobTemplateForm');
+
+    wrapper.setState({ newLabels: [], loadedLabels: [], removedLabels: [] });
+    multiSelect.setState({ input: 'Foo' });
+    component.find('input[aria-label="labels"]').prop('onKeyDown')(event);
+    expect(handleNewLabel).toHaveBeenCalledWith('Foo');
+
+    component.instance().handleNewLabel({ name: 'Bar', id: 2 });
+    expect(component.state().newLabels).toEqual([
+      { name: 'Foo', organization: 1 },
+      { associate: true, id: 2, name: 'Bar' },
+    ]);
+  });
+  test('disassociateLabel should arrange new labels properly', async () => {
+    const wrapper = mountWithContexts(
+      <JobTemplateForm
+        template={mockData}
+        handleSubmit={jest.fn()}
+        handleCancel={jest.fn()}
+      />
+    );
+    const component = wrapper.find('JobTemplateForm');
+    // This asserts that the user generated a label or clicked
+    // on a label option, and then changed their mind and
+    // removed the label.
+    component.instance().removeLabel({ name: 'Alex', id: 17 });
+    expect(component.state().newLabels.length).toBe(0);
+    expect(component.state().removedLabels.length).toBe(0);
+    // This asserts that the user removed a label that was associated
+    // with the template when the template loaded.
+    component.instance().removeLabel({ name: 'Sushi', id: 1 });
+    expect(component.state().newLabels.length).toBe(0);
+    expect(component.state().removedLabels.length).toBe(1);
+  });
 });