diff --git a/jwst/associations/lib/rules_level2_base.py b/jwst/associations/lib/rules_level2_base.py
index a152e1048b..1571e55f10 100644
--- a/jwst/associations/lib/rules_level2_base.py
+++ b/jwst/associations/lib/rules_level2_base.py
@@ -1003,6 +1003,20 @@ def nod_background_overlap(science_item, background_item):
         if exptype not in ['nrs_fixedslit', 'nrs_msaspec']:
             return False
 
+        # Check for target ID - if present,
+        # it must match for either FS or MOS
+        try:
+            sci_target_id = str(science_item['targetid']).lower()
+            bkg_target_id = str(background_item['targetid']).lower()
+        except KeyError:
+            sci_target_id = None
+            bkg_target_id = None
+        if sci_target_id != bkg_target_id:
+            # Report overlap - different activities contain
+            # different sources that may overlap, even if not
+            # at the same primary nod position.
+            return True
+
         # Get pattern number values, needed for FS or MOS
         try:
             numdthpt = int(science_item['numdthpt'])
diff --git a/jwst/associations/lib/rules_level3_base.py b/jwst/associations/lib/rules_level3_base.py
index 944bc2b63b..a0569bdeb4 100644
--- a/jwst/associations/lib/rules_level3_base.py
+++ b/jwst/associations/lib/rules_level3_base.py
@@ -682,6 +682,8 @@ def dms_product_name_nrsfs_sources(asn):
     product_name : str
         The product name
     """
+    target = asn._get_target()
+
     instrument = asn._get_instrument()
 
     opt_elem = asn._get_opt_element()
@@ -690,8 +692,10 @@ def dms_product_name_nrsfs_sources(asn):
     if subarray:
         subarray = '-' + subarray
 
+
     product_name_format = (
         'jw{program}-{acid}'
+        '_{target}'
         '_{source_id}'
         '_{instrument}'
         '_{opt_elem}-{slit_name}{subarray}'
@@ -700,6 +704,7 @@ def dms_product_name_nrsfs_sources(asn):
         product_name_format,
         program=asn.data['program'],
         acid=asn.acid.id,
+        target=target,
         instrument=instrument,
         opt_elem=opt_elem,
         subarray=subarray,