diff --git a/src/tracks/stack/stack-track.ts b/src/tracks/stack/stack-track.ts
index 3f8a04f..042ebfb 100644
--- a/src/tracks/stack/stack-track.ts
+++ b/src/tracks/stack/stack-track.ts
@@ -1,7 +1,8 @@
 import { scaleLinear, ScaleLinear } from 'd3-scale';
 import { select, Selection } from 'd3-selection';
+import { clamp } from '@equinor/videx-math';
 import SvgTrack from '../svg-track';
-import { setAttrs, setProps } from '../../utils';
+import { getContrastYIQ, setAttrs, setProps } from '../../utils';
 import { StackedTrackOptions, AreaData, TransformedAreaData } from './interfaces';
 import { OnMountEvent, OnRescaleEvent, OnUpdateEvent } from '../interfaces';
 
@@ -30,7 +31,12 @@ function plotLabel(
   }
   g.select('g.label').remove();
 
-  const fontSize = 18;
+  // Restrict fontSize to the smallest of 50% of width and 10% of height
+  let fontSize = Math.min(width * 0.5, height * 0.1);
+
+  // Clamp to ensure fontSize remains readable
+  fontSize = clamp(fontSize, 8, 18);
+
   if ((fontSize + 2) > height || (fontSize + 2) > width) {
     // Disregard any small areas that cannot display a single letter.
     return;
@@ -52,10 +58,6 @@ function plotLabel(
   // we compute our own label offset so that it will rotate from the text middle
   // instead of the text baseline.
   const rad_angle = angle * Math.PI / 180;
-  const dx = Math.sin(rad_angle) * (fontSize + 1) / 3;
-  const dy = Math.cos(rad_angle) * (fontSize + 1) / 3;
-  labelX -= dx;
-  labelY += dy;
 
   const labelTransform = `translate(${labelX},${labelY})rotate(${angle})`;
   const labelGroup = g.append('g')
@@ -65,14 +67,15 @@ function plotLabel(
   const label = labelGroup.append('text').text(d.name);
   setProps(label, {
     styles: {
+      'dominant-baseline': 'middle',
       'text-anchor': 'middle',
       'text-rendering': 'optimizeSpeed',
       'stroke-width': 0.5,
     },
     attrs: {
       class: 'label',
-      fill: 'black',
-      stroke: '#333',
+      fill: getContrastYIQ(d.color),
+      stroke: getContrastYIQ(d.color),
       'text-anchor': 'middle',
       'font-size': `${fontSize}px`,
     },
diff --git a/src/utils/utils.ts b/src/utils/utils.ts
index 9b9522a..18d04f1 100644
--- a/src/utils/utils.ts
+++ b/src/utils/utils.ts
@@ -57,3 +57,17 @@ export function debouncer(debounceInterval: number = 20) : DebounceFunction {
 
   return debounce;
 }
+
+/**
+ * Calculate font color based on background color
+ * Dark background will give white text color and vice versa
+ */
+export function getContrastYIQ(rgbString: string) {
+  const rgb = rgbString.replace(/[^\d,.]/g, '').split(',');
+
+  const r = parseFloat(rgb[0]);
+  const g = parseFloat(rgb[1]);
+  const b = parseFloat(rgb[2]);
+  const yiq = ((r * 299) + (g * 587) + (b * 114)) / 1000;
+  return (yiq >= 110) ? 'black' : 'white';
+}