diff --git a/src/layers.c b/src/layers.c
index f26208ef..8f5cb777 100644
--- a/src/layers.c
+++ b/src/layers.c
@@ -553,6 +553,7 @@ handle_new_popup(struct wl_listener *listener, void *data)
 	wlr_output_layout_get_box(server->output_layout,
 		output->wlr_output, &output_box);
 
+	struct wlr_box usable = output_usable_area_in_layout_coords(output);
 	/*
 	 * Output geometry expressed in the coordinate system of the toplevel
 	 * parent of popup. We store this struct the lab_layer_popup struct
@@ -560,10 +561,10 @@ handle_new_popup(struct wl_listener *listener, void *data)
 	 * the bottom to the top layer.
 	 */
 	struct wlr_box output_toplevel_sx_box = {
-		.x = output_box.x - lx,
-		.y = output_box.y - ly,
-		.width = output_box.width,
-		.height = output_box.height,
+		.x = usable.x - lx,
+		.y = usable.y - ly,
+		.width = usable.width,
+		.height = usable.height,
 	};
 	struct lab_layer_popup *popup =
 		create_popup(server, wlr_popup, surface->tree);