diff --git a/.github/workflows/pr-labeling.yml b/.github/workflows/pr-labeling.yml
index 1097f705a0..ead04cf91d 100644
--- a/.github/workflows/pr-labeling.yml
+++ b/.github/workflows/pr-labeling.yml
@@ -2,7 +2,7 @@ name: PR Labeling
 # Story 6.1 - Added concurrency
 
 on:
-  pull_request:
+  pull_request_target:
     types: [opened, synchronize]
 
 concurrency:
@@ -16,34 +16,33 @@ jobs:
       contents: read
       pull-requests: write
     steps:
-      - name: Checkout code
-        uses: actions/checkout@v4
-
       - name: Label PR based on files changed
-        uses: actions/labeler@v4
+        uses: actions/labeler@ac9175f8a1f3625fd0d4fb234536d26811351594 # v4
         with:
           repo-token: "${{ secrets.GITHUB_TOKEN }}"
           configuration-path: .github/labeler.yml
           sync-labels: true
 
-      - name: Check for squad changes
-        id: check-squad
-        run: |
-          if git diff --name-only origin/${{ github.base_ref }}...HEAD | grep -q "^squads/"; then
-            echo "has_squad=true" >> $GITHUB_OUTPUT
-          else
-            echo "has_squad=false" >> $GITHUB_OUTPUT
-          fi
-
-      - name: Add needs-po-review label for squad PRs
-        if: steps.check-squad.outputs.has_squad == 'true'
-        uses: actions/github-script@v7
+      - name: Check for squad changes and add label
+        uses: actions/github-script@f28e40c7f34bde8b3046d885e986cb6290c5673b # v7
         with:
           script: |
-            github.rest.issues.addLabels({
-              issue_number: context.issue.number,
+            const files = await github.paginate(github.rest.pulls.listFiles, {
               owner: context.repo.owner,
               repo: context.repo.repo,
-              labels: ['needs-po-review']
-            })
+              pull_number: context.payload.pull_request.number,
+              per_page: 100
+            });
+            const hasSquadChanges = files.some(f =>
+              f.filename.startsWith('squads/') ||
+              f.previous_filename?.startsWith('squads/')
+            );
+            if (hasSquadChanges) {
+              await github.rest.issues.addLabels({
+                issue_number: context.payload.pull_request.number,
+                owner: context.repo.owner,
+                repo: context.repo.repo,
+                labels: ['needs-po-review']
+              });
+            }