diff --git a/.github/pull_request_template.md b/.github/pull_request_template.md
index 8fe497db20..8a69e2dc01 100644
--- a/.github/pull_request_template.md
+++ b/.github/pull_request_template.md
@@ -42,6 +42,25 @@ describe exactly what you tested below the checkbox.
 - [ ] Linting (`task lint-fix`)
 - [ ] Manual testing (describe below)
 
+## API Compatibility
+
+<!--
+The CRD Schema Compatibility check guards the v1beta1 operator API.
+If the check flags this PR as Incompatible and the break is intentional,
+apply the `api-break-allowed` label and describe below:
+
+1. Which fields, types, or CRDs are changing.
+2. Why the break is unavoidable.
+3. The user-facing migration path (what cluster admins need to do).
+
+See CONTRIBUTING.md → "API Stability" for the full rubric. Coordinate
+with maintainers before applying the label.
+
+Remove this section entirely if the PR does not touch operator API surface.
+-->
+
+- [ ] This PR does not break the `v1beta1` API, OR the `api-break-allowed` label is applied and the migration guidance is described above.
+
 ## Changes
 
 <!--
diff --git a/.github/workflows/api-compat.yml b/.github/workflows/api-compat.yml
index 0f4b112d5b..e9a5341bbb 100644
--- a/.github/workflows/api-compat.yml
+++ b/.github/workflows/api-compat.yml
@@ -2,10 +2,11 @@ name: API Compatibility
 
 # This workflow guards the stability of the v1beta1 operator API surface.
 #
-# Phase 1 (current): advisory only. `crd-schema-check` runs with
-# continue-on-error: true so breaking-change findings are surfaced via the
-# job's step summary but do not block merges. Remove continue-on-error in
-# Phase 2 to start enforcing.
+# A breaking CRD schema change (field removal, type change, required-field
+# addition, etc.) fails this check and blocks the PR. If the break is
+# intentional — almost exclusively for graduation to v1beta2 — apply the
+# `api-break-allowed` label to skip the check. See CONTRIBUTING.md → "API
+# Stability" for the full rubric.
 
 on:
   pull_request:
@@ -28,8 +29,11 @@ jobs:
   crd-schema-check:
     name: CRD Schema Compatibility
     runs-on: ubuntu-latest
-    # Phase 1: advisory only. Remove in Phase 2 to enforce.
-    continue-on-error: true
+    # Skip the check entirely when `api-break-allowed` is applied — a
+    # required check that is skipped (rather than failed) counts as passing
+    # for branch protection, so this is the escape hatch for intentional
+    # breaks. Do not remove the label guard without a replacement path.
+    if: ${{ !contains(github.event.pull_request.labels.*.name, 'api-break-allowed') }}
     # Expected runtime is ~1 minute (checkout + go setup + git fetch tag +
     # go install + per-CRD checker loop). 10 minutes is a cheap upper
     # bound that protects against a hung go install or git fetch.
@@ -146,7 +150,7 @@ jobs:
           fi
 
           {
-            echo "## API Compatibility — CRD Schema Check (Phase 1: advisory)"
+            echo "## API Compatibility — CRD Schema Check"
             echo ""
             echo "**Baseline**: $BASELINE_TAG"
             echo "**Status**: $STATUS"
diff --git a/CONTRIBUTING.md b/CONTRIBUTING.md
index 8789d92c4e..9b663150f3 100644
--- a/CONTRIBUTING.md
+++ b/CONTRIBUTING.md
@@ -148,3 +148,41 @@ We follow the commit formatting recommendations found on
 1. Do not end the subject line with a period
 1. Use the imperative mood in the subject line
 1. Use the body to explain what and why vs. how
+
+## API Stability
+
+The `v1beta1` operator API is stable. CRD schemas and Go types under
+`cmd/thv-operator/api/v1beta1/` carry a compatibility commitment to users
+running the published operator chart. Contributors must not:
+
+- Remove or rename any field, type, or CRD kind in `v1beta1`.
+- Change a field's Go type, JSON tag, or OpenAPI schema type.
+- Add new required fields to existing types.
+- Narrow validation rules (smaller `maxLength`, stricter `pattern`, fewer
+  `enum` values).
+- Rename a finalizer or change a CRD `shortName`.
+- Flip a CRD's `spec.scope` between `Namespaced` and `Cluster`.
+- Un-serve a currently-served version without a deprecation-cycle release.
+
+New fields must be optional. New behaviour must be opt-in via new fields.
+The `CRD Schema Compatibility` CI check enforces the CRD side of this
+contract against the last published release tag on every PR that touches
+`cmd/thv-operator/api/**` or `deploy/charts/operator-crds/files/crds/**`.
+
+### The `api-break-allowed` escape hatch
+
+If you have a genuine reason to break the API — the main expected use
+case is graduation to `v1beta2` — apply the `api-break-allowed` label to
+the PR. This skips the compatibility check.
+
+Before applying the label:
+
+1. **Coordinate with maintainers first.** Open a Discord thread or an
+   issue describing what you are breaking and why.
+2. **Describe the break in the PR description.** Spell out which API
+   elements are changing, what clusters need to do to migrate, and whether
+   downstream consumers (CLI, chart users, operator integrations) need
+   coordinated releases.
+3. **Do not use the label to silence a false positive.** If the check
+   fires on a change you believe is non-breaking, file a bug against the
+   workflow — silencing it hides real breaks on subsequent PRs.