diff --git a/src/com/android/launcher3/BubbleTextView.java b/src/com/android/launcher3/BubbleTextView.java
index baa1ee3..2f0c096 100644
--- a/src/com/android/launcher3/BubbleTextView.java
+++ b/src/com/android/launcher3/BubbleTextView.java
@@ -213,6 +213,7 @@
         mIsRtl = (getResources().getConfiguration().getLayoutDirection()
                 == View.LAYOUT_DIRECTION_RTL);
         mDeviceProfile = mActivity.getDeviceProfile();
+        mCenterVertically = a.getBoolean(R.styleable.BubbleTextView_centerVertically, false);
 
         mDisplay = a.getInteger(R.styleable.BubbleTextView_iconDisplay, DISPLAY_WORKSPACE);
         final int defaultIconSize;
@@ -243,7 +244,6 @@
             defaultIconSize = mDeviceProfile.iconSizePx;
         }
 
-        mCenterVertically = a.getBoolean(R.styleable.BubbleTextView_centerVertically, false);
 
         mIconSize = a.getDimensionPixelSize(R.styleable.BubbleTextView_iconSizeOverride,
                 defaultIconSize);
diff --git a/src/com/android/launcher3/DeviceProfile.java b/src/com/android/launcher3/DeviceProfile.java
index e9545c8..bf4f6c3 100644
--- a/src/com/android/launcher3/DeviceProfile.java
+++ b/src/com/android/launcher3/DeviceProfile.java
@@ -1010,7 +1010,7 @@
      * Returns the amount of extra (or unused) vertical space.
      */
     private int updateAvailableDimensions(Resources res) {
-        iconCenterVertically = mIsScalableGrid || mIsResponsiveGrid;
+        iconCenterVertically = (mIsScalableGrid || mIsResponsiveGrid) && isVerticalBarLayout();
 
         if (mIsResponsiveGrid) {
             iconSizePx = mResponsiveWorkspaceCellSpec.getIconSize();
@@ -1738,15 +1738,8 @@
             // The hotseat icons will be placed in the middle of the hotseat cells.
             // Changing the hotseatCellHeightPx is not affecting hotseat icon positions
             // in vertical bar layout.
-            // Workspace icons are moved up by a small factor. The variable diffOverlapFactor
-            // is set to account for that difference.
-            float diffOverlapFactor = mIsResponsiveGrid ? 0
-                    : iconSizePx * (ICON_OVERLAP_FACTOR - 1) / 2;
-
-            int paddingTop = Math.max((int) (mInsets.top + cellLayoutPaddingPx.top
-                    - diffOverlapFactor), 0);
-            int paddingBottom = Math.max((int) (mInsets.bottom + cellLayoutPaddingPx.bottom
-                    + diffOverlapFactor), 0);
+            int paddingTop = Math.max((int) (mInsets.top + cellLayoutPaddingPx.top), 0);
+            int paddingBottom = Math.max((int) (mInsets.bottom + cellLayoutPaddingPx.bottom), 0);
 
             if (isSeascape()) {
                 hotseatBarPadding.set(mInsets.left + mHotseatBarEdgePaddingPx, paddingTop,
diff --git a/src/com/android/launcher3/folder/FolderIcon.java b/src/com/android/launcher3/folder/FolderIcon.java
index f058ae4..284b31e 100644
--- a/src/com/android/launcher3/folder/FolderIcon.java
+++ b/src/com/android/launcher3/folder/FolderIcon.java
@@ -29,6 +29,7 @@
 import android.animation.ObjectAnimator;
 import android.content.Context;
 import android.graphics.Canvas;
+import android.graphics.Paint;
 import android.graphics.Rect;
 import android.graphics.drawable.Drawable;
 import android.util.AttributeSet;
@@ -633,6 +634,20 @@
         }
     }
 
+    @Override
+    protected void onMeasure(int widthMeasureSpec, int heightMeasureSpec) {
+        boolean shouldCenterIcon = mActivity.getDeviceProfile().iconCenterVertically;
+        if (shouldCenterIcon) {
+            int iconSize = mActivity.getDeviceProfile().iconSizePx;
+            Paint.FontMetrics fm = mFolderName.getPaint().getFontMetrics();
+            int cellHeightPx = iconSize + mFolderName.getCompoundDrawablePadding()
+                    + (int) Math.ceil(fm.bottom - fm.top);
+            setPadding(getPaddingLeft(), (MeasureSpec.getSize(heightMeasureSpec)
+                    - cellHeightPx) / 2, getPaddingRight(), getPaddingBottom());
+        }
+        super.onMeasure(widthMeasureSpec, heightMeasureSpec);
+    }
+
     /** Sets the visibility of the icon's title text */
     public void setTextVisible(boolean visible) {
         if (visible) {