diff --git a/libsemanage/usepasswd-in-semanage-conf/runtest.sh b/libsemanage/usepasswd-in-semanage-conf/runtest.sh
index d11a837..8aadf23 100755
--- a/libsemanage/usepasswd-in-semanage-conf/runtest.sh
+++ b/libsemanage/usepasswd-in-semanage-conf/runtest.sh
@@ -5,10 +5,11 @@
 #   runtest.sh of /CoreOS/libsemanage/Sanity/usepasswd-in-semanage-conf
 #   Description: Make sure usepasswd option in semanage.conf works properly
 #   Author: Vit Mojzis <vmojzis@redhat.com>
+#   Author: Petr Lautrbach <plautrba@redhat.com>
 #
 # ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
 #
-#   Copyright (c) 2016 Red Hat, Inc.
+#   Copyright (c) 2020 Red Hat, Inc.
 #
 #   This copyrighted material is made available to anyone wishing
 #   to use, modify, copy, or redistribute it subject to the terms
@@ -27,50 +28,118 @@
 # ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
 
 # Include Beaker environment
-. /usr/bin/rhts-environment.sh || exit 1
 . /usr/share/beakerlib/beakerlib.sh || exit 1
 
 PACKAGE="libsemanage"
 SEMANAGE_CONF="/etc/selinux/semanage.conf"
 
 rlJournalStart
-	rlPhaseStartSetup
-		rlAssertRpm ${PACKAGE}
-		rlAssertRpm policycoreutils
-		rlAssertRpm selinux-policy
-		rlFileBackup ${SEMANAGE_CONF}
-		rlRun "rpm -qf /usr/sbin/semanage"
-		rlRun "grep -v -e '^#' -e '^$' ${SEMANAGE_CONF}"
-		OUTPUT_FILE=`mktemp`
-		CMP_FILE=`mktemp`
-		rlRun "setenforce 1"
-		rlRun "sestatus"
+    rlPhaseStartSetup
+        rlAssertRpm ${PACKAGE}
+        rlAssertRpm policycoreutils
+        rlAssertRpm selinux-policy
+        rlRun "rpm -qf /usr/sbin/semanage"
+        rlRun "grep -v -e '^#' -e '^$' ${SEMANAGE_CONF}"
+        OUTPUT_FILE=`mktemp`
+        CMP_FILE=`mktemp`
+        rlRun "setenforce 1"
+        rlRun "sestatus"
     rlPhaseEnd
 
-	rlPhaseStartTest "usepasswd=False"
-		rlRun 'sed -i "s|usepasswd=.*$|usepasswd=False|g" ${SEMANAGE_CONF}'
-		rlRun 'semodule -B' # rebuild file_contexts.homedirs
-		rlRun "semanage fcontext -l 2>&1 > ${CMP_FILE}" # save file contexts for comparison
-		rlRun 'useradd -Z unconfined_u duck'
-		rlRun 'semanage login -l | grep duck' 0
-		rlRun "semanage fcontext -l 2>&1 > ${OUTPUT_FILE}"
-		rlRun "diff ${CMP_FILE} ${OUTPUT_FILE}" 0
-	rlPhaseEnd
-
-	rlPhaseStartTest "usepasswd=True"
-		rlRun 'sed -i "s|usepasswd=.*$|usepasswd=True|g" ${SEMANAGE_CONF}'
-		rlRun 'semodule -B' # rebuild file_contexts.homedirs
-		rlRun "semanage fcontext -l 2>&1 > ${OUTPUT_FILE}" # file context with new selinux login
-		rlRun 'semanage login -d duck'
-		rlRun "semanage fcontext -l 2>&1 > ${CMP_FILE}"
-		rlRun "diff ${CMP_FILE} ${OUTPUT_FILE} | grep duck"
-	rlPhaseEnd
-
-	rlPhaseStartCleanup
-		rlRun "rm -f ${OUTPUT_FILE} ${CMP_FILE}"
-		rlRun "userdel duck"
-		rlFileRestore
-	rlPhaseEnd
+    # usepasswd=False - generate contexts for user with explicit SELinux mapping
+    rlPhaseStartTest "usepasswd=False"
+        rlFileBackup ${SEMANAGE_CONF}
+
+        rlRun "sed -i 's|usepasswd=.*$|usepasswd=False|g' ${SEMANAGE_CONF}"
+        rlRun "semodule -B" # rebuild file_contexts.homedirs
+        rlRun "semanage fcontext -l 2>&1 > ${CMP_FILE}" # save file contexts for comparison
+
+        rlLog "Standard users should not trigger a policy change"
+        rlRun "useradd duck-home"
+        rlRun "useradd -d /tmp duck-tmp"
+        rlRun "useradd -d /var/lib/duck duck-var-lib"
+        rlRun "semodule -B" # rebuild file_contexts.homedirs
+        rlRun "semanage fcontext -l 2>&1 > ${OUTPUT_FILE}" # file context with new selinux login
+        rlRun "diff -u ${CMP_FILE} ${OUTPUT_FILE}" 0
+        rlRun "userdel duck-home"
+        rlRun "userdel duck-tmp"
+        rlRun "userdel duck-var-lib"
+
+        rlLog "SELinux users with home in / shoud not trigger a policy change"
+        rlRun "useradd -Z unconfined_u -d /tmp duck-tmp"
+        rlRun "useradd -Z unconfined_u -d /var duck-var"
+        rlRun "semodule -B" # rebuild file_contexts.homedirs
+        rlRun "semanage fcontext -l 2>&1 > ${OUTPUT_FILE}" # file context with new selinux login
+        rlRun "diff -u ${CMP_FILE} ${OUTPUT_FILE}" 0
+        rlRun "userdel -Z duck-tmp"
+        rlRun "userdel -Z duck-var"
+
+        rlLog "Other SELinux users should trigger a policy change"
+        rlRun "useradd -Z unconfined_u duck-home"
+        rlRun "useradd -Z unconfined_u -d /var/home duck-var-home"
+        rlRun "semodule -B" # rebuild file_contexts.homedirs
+        rlRun "semanage fcontext -l 2>&1 > ${OUTPUT_FILE}" # file context with new selinux login
+        rlRun "diff -u ${CMP_FILE} ${OUTPUT_FILE} | grep -E 'duck-(home|var-home)'" 0
+        rlRun "userdel -Z duck-home"
+        rlRun "userdel -Z duck-var-home"
+
+        rlFileRestore
+    rlPhaseEnd
+
+    rlPhaseStartTest "usepasswd=True"
+        rlFileBackup ${SEMANAGE_CONF}
+
+        rlRun "sed -i 's|usepasswd=.*$|usepasswd=True|g' ${SEMANAGE_CONF}"
+        rlRun "semodule -B" # rebuild file_contexts.homedirs
+        rlRun "semanage fcontext -l 2>&1 > ${CMP_FILE}" # save file contexts for comparison
+
+        rlLog "Standard users with home in /home should not trigger a policy change"
+        rlRun "useradd duck-home"
+        rlRun "semodule -B" # rebuild file_contexts.homedirs
+        rlRun "semanage fcontext -l 2>&1 > ${OUTPUT_FILE}" # file context with new selinux login
+        rlRun "diff -u ${CMP_FILE} ${OUTPUT_FILE}" 0
+        rlRun "userdel duck-home"
+
+        rlLog "Standard users with home in directory like /var/home should trigger a policy change"
+        rlRun "useradd -d /var/home/duck duck-var-home"
+        rlRun "semodule -B" # rebuild file_contexts.homedirs
+        rlRun "semanage fcontext -l 2>&1 > ${OUTPUT_FILE}" # file context with new selinux login
+        rlRun "diff -u ${CMP_FILE} ${OUTPUT_FILE} | grep -E '/var/home/'" 0
+        rlRun "userdel duck-var-home"
+
+        rlLog "Standard users with home in / shoud not trigger a policy change"
+        rlRun "useradd -d /tmp duck-tmp"
+        rlRun "useradd -d /var duck-var"
+        rlRun "semodule -B" # rebuild file_contexts.homedirs
+        rlRun "semanage fcontext -l 2>&1 > ${OUTPUT_FILE}" # file context with new selinux login
+        rlRun "diff -u ${CMP_FILE} ${OUTPUT_FILE}" 0
+        rlRun "userdel -Z duck-tmp"
+        rlRun "userdel -Z duck-var"
+
+        rlLog "SELinux users with home in / shoud not trigger a policy change"
+        rlRun "useradd -Z unconfined_u -d /tmp duck-tmp"
+        rlRun "useradd -Z unconfined_u -d /var duck-var"
+        rlRun "semodule -B" # rebuild file_contexts.homedirs
+        rlRun "semanage fcontext -l 2>&1 > ${OUTPUT_FILE}" # file context with new selinux login
+        rlRun "diff -u ${CMP_FILE} ${OUTPUT_FILE}" 0
+        rlRun "userdel -Z duck-tmp"
+        rlRun "userdel -Z duck-var"
+
+        rlLog "Other SELinux users should trigger a policy change"
+        rlRun "useradd -Z unconfined_u duck-home"
+        rlRun "useradd -Z unconfined_u -d /var/home duck-var-home"
+        rlRun "semodule -B" # rebuild file_contexts.homedirs
+        rlRun "semanage fcontext -l 2>&1 > ${OUTPUT_FILE}" # file context with new selinux login
+        rlRun "diff -u ${CMP_FILE} ${OUTPUT_FILE} | grep -E 'duck-(home|var-home)'" 0
+        rlRun "userdel -Z duck-home"
+        rlRun "userdel -Z duck-var-home"
+
+        rlFileRestore
+    rlPhaseEnd
+
+    rlPhaseStartCleanup
+        rlRun "rm -f ${OUTPUT_FILE} ${CMP_FILE}"
+    rlPhaseEnd
 rlJournalPrintText
 rlJournalEnd