An improved adhesive application assembly (70) for a labeling machine (2) includes an adhesive sprayer (76) which directs heated adhesive (88) towards labels (60) passing the adhesive application station (70). A moving heated adhesive shield (80) includes one or more windows (84), through which the adhesive is sprayed, surrounded by a heated overspray-intercepting surface (90). The intercepted adhesive is collected for reuse.