diff --git a/internal/app/cmd/daemon.go b/internal/app/cmd/daemon.go
index 8de19f4..8e47bf6 100644
--- a/internal/app/cmd/daemon.go
+++ b/internal/app/cmd/daemon.go
@@ -64,7 +64,6 @@ func runDaemon(ctx context.Context, configFile *string) func(cmd *cobra.Command,
 		if len(ls) == 0 {
 			log.Warn("no labels configured, runner may not be able to pick up jobs")
 		}
-		reg.Labels = ls.ToStrings()
 
 		if ls.RequireDocker() {
 			dockerSocketPath, err := getDockerSocketPath(cfg.Container.DockerHost)
@@ -112,6 +111,7 @@ func runDaemon(ctx context.Context, configFile *string) func(cmd *cobra.Command,
 			log.Infof("runner: %s, with version: %s, with labels: %v, declared successfully",
 				resp.Msg.Runner.Name, resp.Msg.Runner.Version, resp.Msg.Runner.Labels)
 			// if declared successfully, override the labels in the.runner file with valid labels in the config file (if specified)
+			runner.Update(ctx, ls)
 			reg.Labels = ls.ToStrings()
 			if err := config.SaveRegistration(cfg.Runner.File, reg); err != nil {
 				return fmt.Errorf("failed to save runner config: %w", err)
diff --git a/internal/app/run/runner.go b/internal/app/run/runner.go
index ee12165..ff54fa7 100644
--- a/internal/app/run/runner.go
+++ b/internal/app/run/runner.go
@@ -242,3 +242,7 @@ func (r *Runner) Declare(ctx context.Context, labels []string) (*connect.Respons
 		Labels:  labels,
 	}))
 }
+
+func (r *Runner) Update(ctx context.Context, labels labels.Labels) {
+	r.labels = labels
+}