diff --git a/tests/unit/test_server.py b/tests/unit/test_server.py
index b2c6300..fa3edd0 100644
--- a/tests/unit/test_server.py
+++ b/tests/unit/test_server.py
@@ -47,7 +47,8 @@ def test_comment_created_by_user(signature_mock):
     responses._add_from_file(
         UNITTESTS_DIR / "url_responses" / "issue_labeled_correct_for_existing_ticket.yaml"
     )
-    responses._add_from_file(UNITTESTS_DIR / "url_responses" / "auth_github_responses.yaml")
+    responses._add_from_file(UNITTESTS_DIR / "url_responses" / "github_auth.yaml")
+    responses._add_from_file(UNITTESTS_DIR / "url_responses" / "github_settings_with_labels.yaml")
     responses._add_from_file(UNITTESTS_DIR / "url_responses" / "jira_auth_responses.yaml")
     responses._add_from_file(UNITTESTS_DIR / "url_responses" / "jira_comment_created.yaml")
     response = client.post(
@@ -62,7 +63,8 @@ def test_comment_created_by_user(signature_mock):
 @responses.activate(assert_all_requests_are_fired=True)
 def test_issue_labeled_correct(signature_mock):
     responses._add_from_file(UNITTESTS_DIR / "url_responses" / "issue_labeled_correct.yaml")
-    responses._add_from_file(UNITTESTS_DIR / "url_responses" / "auth_github_responses.yaml")
+    responses._add_from_file(UNITTESTS_DIR / "url_responses" / "github_auth.yaml")
+    responses._add_from_file(UNITTESTS_DIR / "url_responses" / "github_settings_with_labels.yaml")
     responses._add_from_file(UNITTESTS_DIR / "url_responses" / "jira_auth_responses.yaml")
     responses._add_from_file(UNITTESTS_DIR / "url_responses" / "jira_create_issue.yaml")
     response = client.post(
@@ -87,7 +89,8 @@ def test_issue_created_with_label(signature_mock):
         6. Validate via JQL that this issue does not exist in Jira
         7. Create new issue in Jira
     """
-    responses._add_from_file(UNITTESTS_DIR / "url_responses" / "auth_github_responses.yaml")
+    responses._add_from_file(UNITTESTS_DIR / "url_responses" / "github_auth.yaml")
+    responses._add_from_file(UNITTESTS_DIR / "url_responses" / "github_settings_with_labels.yaml")
     responses._add_from_file(UNITTESTS_DIR / "url_responses" / "jira_auth_responses.yaml")
     responses._add_from_file(UNITTESTS_DIR / "url_responses" / "issue_labeled_correct.yaml")
     responses._add_from_file(UNITTESTS_DIR / "url_responses" / "jira_create_issue.yaml")
@@ -117,7 +120,8 @@ def test_issue_created_with_label_for_existing_ticket(signature_mock):
     responses._add_from_file(
         UNITTESTS_DIR / "url_responses" / "issue_labeled_correct_for_existing_ticket.yaml"
     )
-    responses._add_from_file(UNITTESTS_DIR / "url_responses" / "auth_github_responses.yaml")
+    responses._add_from_file(UNITTESTS_DIR / "url_responses" / "github_auth.yaml")
+    responses._add_from_file(UNITTESTS_DIR / "url_responses" / "github_settings_with_labels.yaml")
     responses._add_from_file(UNITTESTS_DIR / "url_responses" / "jira_auth_responses.yaml")
     response = client.post(
         "/",
@@ -131,7 +135,25 @@ def test_issue_created_with_label_for_existing_ticket(signature_mock):
 @responses.activate(assert_all_requests_are_fired=True)
 def test_issue_created_without_label(signature_mock):
     responses._add_from_file(UNITTESTS_DIR / "url_responses" / "issue_created_without_label.yaml")
-    responses._add_from_file(UNITTESTS_DIR / "url_responses" / "auth_github_responses.yaml")
+    responses._add_from_file(UNITTESTS_DIR / "url_responses" / "github_auth.yaml")
+    responses._add_from_file(UNITTESTS_DIR / "url_responses" / "github_settings_with_labels.yaml")
+    response = client.post(
+        "/",
+        json=_get_json("issue_created_without_label.json"),
+    )
+
+    assert response.status_code == 200
+    assert response.json() == {"msg": "Issue is not labeled with the specified label"}
+
+
+@responses.activate(assert_all_requests_are_fired=True)
+def test_issue_created_without_label_and_no_config(signature_mock):
+    """Test when issue is created without a label and repo config doesn't require one."""
+    responses._add_from_file(UNITTESTS_DIR / "url_responses" / "issue_created_without_label.yaml")
+    responses._add_from_file(UNITTESTS_DIR / "url_responses" / "github_auth.yaml")
+    responses._add_from_file(
+        UNITTESTS_DIR / "url_responses" / "github_settings_without_labels.yaml"
+    )
     response = client.post(
         "/",
         json=_get_json("issue_created_without_label.json"),
@@ -146,7 +168,8 @@ def test_issue_closed_as_completed(signature_mock):
     responses._add_from_file(
         UNITTESTS_DIR / "url_responses" / "issue_labeled_correct_for_existing_ticket.yaml"
     )
-    responses._add_from_file(UNITTESTS_DIR / "url_responses" / "auth_github_responses.yaml")
+    responses._add_from_file(UNITTESTS_DIR / "url_responses" / "github_auth.yaml")
+    responses._add_from_file(UNITTESTS_DIR / "url_responses" / "github_settings_with_labels.yaml")
     responses._add_from_file(UNITTESTS_DIR / "url_responses" / "jira_auth_responses.yaml")
     responses._add_from_file(UNITTESTS_DIR / "url_responses" / "jira_transition_issue.yaml")
     response = client.post(
@@ -163,7 +186,8 @@ def test_issue_closed_as_not_planned(signature_mock):
     responses._add_from_file(
         UNITTESTS_DIR / "url_responses" / "issue_labeled_correct_for_existing_ticket.yaml"
     )
-    responses._add_from_file(UNITTESTS_DIR / "url_responses" / "auth_github_responses.yaml")
+    responses._add_from_file(UNITTESTS_DIR / "url_responses" / "github_auth.yaml")
+    responses._add_from_file(UNITTESTS_DIR / "url_responses" / "github_settings_with_labels.yaml")
     responses._add_from_file(UNITTESTS_DIR / "url_responses" / "jira_auth_responses.yaml")
     responses._add_from_file(UNITTESTS_DIR / "url_responses" / "jira_transition_issue.yaml")
     response = client.post(
diff --git a/tests/unit/url_responses/auth_github_responses.yaml b/tests/unit/url_responses/github_auth.yaml
similarity index 82%
rename from tests/unit/url_responses/auth_github_responses.yaml
rename to tests/unit/url_responses/github_auth.yaml
index 563f841..601fbdb 100644
--- a/tests/unit/url_responses/auth_github_responses.yaml
+++ b/tests/unit/url_responses/github_auth.yaml
@@ -21,12 +21,3 @@ responses:
     method: GET
     status: 200
     url: https://api.github.com:443/repos/beliaev-maksim/test-ci
-
-# get content of .jira_sync_config.yaml to load the settings for the repo
-- response:
-    auto_calculate_content_length: false
-    body: '{"name":".jira_sync_config.yaml","path":".github/.jira_sync_config.yaml","sha":"a1a8aab6de92fc3eed4211350200ada4a2405b9c","size":297,"url":"https://api.github.com/repos/beliaev-maksim/test-ci/contents/.github/.jira_sync_config.yaml?ref=master","html_url":"https://github.com/beliaev-maksim/test-ci/blob/master/.github/.jira_sync_config.yaml","git_url":"https://api.github.com/repos/beliaev-maksim/test-ci/git/blobs/a1a8aab6de92fc3eed4211350200ada4a2405b9c","download_url":"https://raw.githubusercontent.com/beliaev-maksim/test-ci/master/.github/.jira_sync_config.yaml","type":"file","content":"c2V0dGluZ3M6CiAgY29tcG9uZW50czoKICAgIC0gSW9UCiAgICAtIERBQ0ggVFQKICBsYWJlbHM6CiAgICAtIGJ1ZwogICAgLSBjdXN0b20KICBhZGRfZ2hfY29tbWVudDogZmFsc2UKICBzeW5jX2Rlc2NyaXB0aW9uOiB0cnVlCiAgc3luY19jb21tZW50czogdHJ1ZQogIGVwaWNfa2V5OiAiTVRDLTI5NiIKICBqaXJhX3Byb2plY3Rfa2V5OiAiTVRDIgogIHN0YXR1c19tYXBwaW5nOgogICAgb3BlbmVkOiBVbnRyaWFnZWQKICAgIGNsb3NlZDogZG9uZSAKICBsYWJlbF9tYXBwaW5nOgogICAgZW5oYW5jZW1lbnQ6IFN0b3J5Cg==","encoding":"base64","_links":{"self":"https://api.github.com/repos/beliaev-maksim/test-ci/contents/.github/.jira_sync_config.yaml?ref=master","git":"https://api.github.com/repos/beliaev-maksim/test-ci/git/blobs/a1a8aab6de92fc3eed4211350200ada4a2405b9c","html":"https://github.com/beliaev-maksim/test-ci/blob/master/.github/.jira_sync_config.yaml"}}'
-    content_type: text/plain
-    method: GET
-    status: 200
-    url: https://api.github.com:443/repos/beliaev-maksim/test-ci/contents/.github/.jira_sync_config.yaml
\ No newline at end of file
diff --git a/tests/unit/url_responses/github_settings_with_labels.yaml b/tests/unit/url_responses/github_settings_with_labels.yaml
new file mode 100644
index 0000000..d7f22d4
--- /dev/null
+++ b/tests/unit/url_responses/github_settings_with_labels.yaml
@@ -0,0 +1,29 @@
+# get content of .jira_sync_config.yaml to load the settings for the repo
+responses:
+- response:
+    auto_calculate_content_length: false
+    body: '{"name":".jira_sync_config.yaml","path":".github/.jira_sync_config.yaml","sha":"a1a8aab6de92fc3eed4211350200ada4a2405b9c","size":297,"url":"https://api.github.com/repos/beliaev-maksim/test-ci/contents/.github/.jira_sync_config.yaml?ref=master","html_url":"https://github.com/beliaev-maksim/test-ci/blob/master/.github/.jira_sync_config.yaml","git_url":"https://api.github.com/repos/beliaev-maksim/test-ci/git/blobs/a1a8aab6de92fc3eed4211350200ada4a2405b9c","download_url":"https://raw.githubusercontent.com/beliaev-maksim/test-ci/master/.github/.jira_sync_config.yaml","type":"file","content":"c2V0dGluZ3M6CiAgY29tcG9uZW50czoKICAgIC0gSW9UCiAgICAtIERBQ0ggVFQKICBsYWJlbHM6CiAgICAtIGJ1ZwogICAgLSBjdXN0b20KICBhZGRfZ2hfY29tbWVudDogZmFsc2UKICBzeW5jX2Rlc2NyaXB0aW9uOiB0cnVlCiAgc3luY19jb21tZW50czogdHJ1ZQogIGVwaWNfa2V5OiAiTVRDLTI5NiIKICBqaXJhX3Byb2plY3Rfa2V5OiAiTVRDIgogIHN0YXR1c19tYXBwaW5nOgogICAgb3BlbmVkOiBVbnRyaWFnZWQKICAgIGNsb3NlZDogZG9uZSAKICBsYWJlbF9tYXBwaW5nOgogICAgZW5oYW5jZW1lbnQ6IFN0b3J5Cg==","encoding":"base64","_links":{"self":"https://api.github.com/repos/beliaev-maksim/test-ci/contents/.github/.jira_sync_config.yaml?ref=master","git":"https://api.github.com/repos/beliaev-maksim/test-ci/git/blobs/a1a8aab6de92fc3eed4211350200ada4a2405b9c","html":"https://github.com/beliaev-maksim/test-ci/blob/master/.github/.jira_sync_config.yaml"}}'
+    content_type: text/plain
+    method: GET
+    status: 200
+    url: https://api.github.com:443/repos/beliaev-maksim/test-ci/contents/.github/.jira_sync_config.yaml
+
+
+# That is the base64 encoded content
+#settings:
+#  components:
+#    - IoT
+#    - DACH TT
+#  labels:
+#    - bug
+#    - custom
+#  add_gh_comment: false
+#  sync_description: true
+#  sync_comments: true
+#  epic_key: "MTC-296"
+#  jira_project_key: "MTC"
+#  status_mapping:
+#    opened: Untriaged
+#    closed: done
+#  label_mapping:
+#    enhancement: Story
\ No newline at end of file
diff --git a/tests/unit/url_responses/github_settings_without_labels.yaml b/tests/unit/url_responses/github_settings_without_labels.yaml
new file mode 100644
index 0000000..1c19175
--- /dev/null
+++ b/tests/unit/url_responses/github_settings_without_labels.yaml
@@ -0,0 +1,27 @@
+# get content of .jira_sync_config.yaml to load the settings for the repo
+responses:
+- response:
+    auto_calculate_content_length: false
+    body: '{"name":".jira_sync_config.yaml","path":".github/.jira_sync_config.yaml","sha":"a1a8aab6de92fc3eed4211350200ada4a2405b9c","size":297,"url":"https://api.github.com/repos/beliaev-maksim/test-ci/contents/.github/.jira_sync_config.yaml?ref=master","html_url":"https://github.com/beliaev-maksim/test-ci/blob/master/.github/.jira_sync_config.yaml","git_url":"https://api.github.com/repos/beliaev-maksim/test-ci/git/blobs/a1a8aab6de92fc3eed4211350200ada4a2405b9c","download_url":"https://raw.githubusercontent.com/beliaev-maksim/test-ci/master/.github/.jira_sync_config.yaml","type":"file","content":"c2V0dGluZ3M6CiAgY29tcG9uZW50czoKICAgIC0gSW9UCiAgICAtIERBQ0ggVFQKCiAgYWRkX2doX2NvbW1lbnQ6IGZhbHNlCiAgc3luY19kZXNjcmlwdGlvbjogdHJ1ZQogIHN5bmNfY29tbWVudHM6IHRydWUKICBlcGljX2tleTogIk1UQy0yOTYiCiAgamlyYV9wcm9qZWN0X2tleTogIk1UQyIKICBzdGF0dXNfbWFwcGluZzoKICAgIG9wZW5lZDogVW50cmlhZ2VkCiAgICBjbG9zZWQ6IGRvbmUgCiAgbGFiZWxfbWFwcGluZzoKICAgIGVuaGFuY2VtZW50OiBTdG9yeQo=","encoding":"base64","_links":{"self":"https://api.github.com/repos/beliaev-maksim/test-ci/contents/.github/.jira_sync_config.yaml?ref=master","git":"https://api.github.com/repos/beliaev-maksim/test-ci/git/blobs/a1a8aab6de92fc3eed4211350200ada4a2405b9c","html":"https://github.com/beliaev-maksim/test-ci/blob/master/.github/.jira_sync_config.yaml"}}'
+    content_type: text/plain
+    method: GET
+    status: 200
+    url: https://api.github.com:443/repos/beliaev-maksim/test-ci/contents/.github/.jira_sync_config.yaml
+
+
+# That is the base64 encoded content
+#settings:
+#  components:
+#    - IoT
+#    - DACH TT
+#
+#  add_gh_comment: false
+#  sync_description: true
+#  sync_comments: true
+#  epic_key: "MTC-296"
+#  jira_project_key: "MTC"
+#  status_mapping:
+#    opened: Untriaged
+#    closed: done
+#  label_mapping:
+#    enhancement: Story
\ No newline at end of file