diff --git a/.github/workflows/Action-Test.yml b/.github/workflows/Action-Test.yml
index 6a4aee7..1ee2812 100644
--- a/.github/workflows/Action-Test.yml
+++ b/.github/workflows/Action-Test.yml
@@ -32,7 +32,6 @@ jobs:
         id: action-test
         with:
           Path: src
-          Settings: SourceCode
           WorkingDirectory: tests/srcTestRepo
 
       - name: Status
@@ -56,7 +55,6 @@ jobs:
         id: action-test
         with:
           Path: src
-          Settings: Custom
           SettingsFilePath: tests/Custom.Settings.psd1
           WorkingDirectory: tests/srcTestRepo
 
@@ -82,7 +80,7 @@ jobs:
         id: action-test
         with:
           Path: src
-          Settings: SourceCode
+          SettingsFilePath: tests/SourceCode.Settings.psd1
           WorkingDirectory: tests/srcWithManifestTestRepo
 
       - name: Status
@@ -106,7 +104,6 @@ jobs:
         id: action-test
         with:
           Path: outputs/modules/PSModuleTest
-          Settings: Module
           WorkingDirectory: tests/outputTestRepo
 
       - name: Status
diff --git a/README.md b/README.md
index a7e8c71..bd8f204 100644
--- a/README.md
+++ b/README.md
@@ -18,8 +18,7 @@ customize rule selection, severity filtering, and custom rule inclusion.
 | Input                                | Description                                                                    | Required | Default                                                                     |
 |--------------------------------------|--------------------------------------------------------------------------------|----------|-----------------------------------------------------------------------------|
 | `Path`                               | The path to the code to test.                                                  | false    | `'.'`                                                                       |
-| `Settings`                           | The type of tests to run: `Module`, `SourceCode`, or `Custom`.                 | false    | `Custom`                                                                    |
-| `SettingsFilePath`                   | If `Custom` is selected, the path to the settings file.                        | false    | `${{ github.workspace }}/.github/linters/.powershell-psscriptanalyzer.psd1` |
+| `SettingsFilePath`                   | The path to the settings file.                                                 | false    | `.github/linters/.powershell-psscriptanalyzer.psd1`                         |
 | `Debug`                              | Enable debug output.                                                           | false    | `'false'`                                                                   |
 | `Verbose`                            | Enable verbose output.                                                         | false    | `'false'`                                                                   |
 | `Version`                            | Specifies the exact version of the GitHub module to install.                   | false    |                                                                             |
@@ -89,19 +88,18 @@ The action provides the following outputs:
    Choose a path for your code to test into the `Path` input. This can be a
    directory or a file.
 
-2. **Choose settings**
-   Choose the type of tests to run by setting the `Settings` input. The options
-   are `Module`, `SourceCode`, or `Custom`. The default is `Custom`.
+2. **Configure settings file**
+   Create a custom settings file to customize the analysis. The settings file is
+   a hashtable that defines the rules to include, exclude, or customize. The
+   settings file is in the format of a `.psd1` file.
 
-   The predefined settings:
-    - [`Module`](./scripts/tests/PSScriptAnalyzer/Module.Settings.psd1): Analyzes a module following PSModule standards.
-    - [`SourceCode`](./scripts/tests/PSScriptAnalyzer/SourceCode.Settings.psd1): Analyzes the source code following PSModule standards.
+   By default, the action looks for a settings file at:
+   `.github/linters/.powershell-psscriptanalyzer.psd1`
 
-    You can also create a custom settings file to customize the analysis. The
-    settings file is a hashtable that defines the rules to include, exclude, or
-    customize. The settings file is in the format of a `.psd1` file.
+   You can override this by setting the `SettingsFilePath` input to point to your
+   custom settings file.
 
-    For more info on how to create a settings file, see the [Settings Documentation](./Settings.md) file.
+   For more info on how to create a settings file, see the [Settings Documentation](./Settings.md) file.
 
 3. **Run the Action**
    The tests import the settings file and use `Invoke-ScriptAnalyzer` to analyze
@@ -139,7 +137,7 @@ jobs:
         uses: PSModule/Invoke-ScriptAnalyzer@v2
         with:
           Path: src
-          Settings: SourceCode
+          SettingsFilePath: .github/linters/.powershell-psscriptanalyzer.psd1
 ```
 
 ## References and Links
diff --git a/action.yml b/action.yml
index 015de2b..bdc803f 100644
--- a/action.yml
+++ b/action.yml
@@ -9,14 +9,10 @@ inputs:
   Path:
     description: The path to the code to test.
     required: false
-  Settings:
-    description: The type of tests to run. Can be either 'Module', 'SourceCode' or 'Custom'.
-    required: false
-    default: Custom
   SettingsFilePath:
-    description: If 'Custom' is selected, the path to the settings file.
+    description: The path to the settings file.
     required: false
-    default: ${{ github.workspace }}/.github/linters/.powershell-psscriptanalyzer.psd1
+    default: .github/linters/.powershell-psscriptanalyzer.psd1
   Debug:
     description: Enable debug output.
     required: false
@@ -251,7 +247,6 @@ runs:
       id: paths
       env:
         PSMODULE_INVOKE_SCRIPTANALYZER_INPUT_Path: ${{ inputs.Path }}
-        PSMODULE_INVOKE_SCRIPTANALYZER_INPUT_Settings: ${{ inputs.Settings }}
         PSMODULE_INVOKE_SCRIPTANALYZER_INPUT_SettingsFilePath: ${{ inputs.SettingsFilePath }}
       with:
         Debug: ${{ inputs.Debug }}
@@ -265,7 +260,6 @@ runs:
       uses: PSModule/Invoke-Pester@v4
       id: test
       env:
-        Settings: ${{ fromJson(steps.paths.outputs.result).Settings }}
         SettingsFilePath: ${{ fromJson(steps.paths.outputs.result).SettingsFilePath }}
       with:
         Debug: ${{ inputs.Debug }}
diff --git a/scripts/main.ps1 b/scripts/main.ps1
index 8d0d543..fd2ca24 100644
--- a/scripts/main.ps1
+++ b/scripts/main.ps1
@@ -1,28 +1,18 @@
-# If test type is module, the code we ought to test is in the path/name folder, otherwise it's in the path folder.
-$settings = $env:PSMODULE_INVOKE_SCRIPTANALYZER_INPUT_Settings
+# Resolve paths for testing
 $testPath = Resolve-Path -Path "$PSScriptRoot/tests/PSScriptAnalyzer" | Select-Object -ExpandProperty Path
 $path = [string]::IsNullOrEmpty($env:PSMODULE_INVOKE_SCRIPTANALYZER_INPUT_Path) ? '.' : $env:PSMODULE_INVOKE_SCRIPTANALYZER_INPUT_Path
 $codePath = Resolve-Path -Path $path | Select-Object -ExpandProperty Path
-$settingsFilePath = switch -Regex ($settings) {
-    'Module|SourceCode' {
-        "$testPath/$settings.Settings.psd1"
-    }
-    'Custom' {
-        Resolve-Path -Path $env:PSMODULE_INVOKE_SCRIPTANALYZER_INPUT_SettingsFilePath | Select-Object -ExpandProperty Path
-    }
-    default {
-        throw "Invalid test type: [$settings]"
-    }
-}
+$settingsFilePath = Resolve-Path -Path $env:PSMODULE_INVOKE_SCRIPTANALYZER_INPUT_SettingsFilePath | Select-Object -ExpandProperty Path
 
 [pscustomobject]@{
-    Settings         = $settings
     CodePath         = $codePath
     TestPath         = $testPath
     SettingsFilePath = $settingsFilePath
 } | Format-List | Out-String
 
-Set-GitHubOutput -Name Settings -Value $settings
+if (!(Test-Path -Path $settingsFilePath)) {
+    throw "Settings file not found at path: $settingsFilePath"
+}
 Set-GitHubOutput -Name CodePath -Value $codePath
 Set-GitHubOutput -Name TestPath -Value $testPath
 Set-GitHubOutput -Name SettingsFilePath -Value $settingsFilePath
diff --git a/scripts/tests/PSScriptAnalyzer/Module.Settings.psd1 b/tests/outputTestRepo/.github/linters/.powershell-psscriptanalyzer.psd1
similarity index 100%
rename from scripts/tests/PSScriptAnalyzer/Module.Settings.psd1
rename to tests/outputTestRepo/.github/linters/.powershell-psscriptanalyzer.psd1
diff --git a/scripts/tests/PSScriptAnalyzer/SourceCode.Settings.psd1 b/tests/srcTestRepo/.github/linters/.powershell-psscriptanalyzer.psd1
similarity index 100%
rename from scripts/tests/PSScriptAnalyzer/SourceCode.Settings.psd1
rename to tests/srcTestRepo/.github/linters/.powershell-psscriptanalyzer.psd1
diff --git a/tests/srcWithManifestTestRepo/tests/SourceCode.Settings.psd1 b/tests/srcWithManifestTestRepo/tests/SourceCode.Settings.psd1
new file mode 100644
index 0000000..09cc3d0
--- /dev/null
+++ b/tests/srcWithManifestTestRepo/tests/SourceCode.Settings.psd1
@@ -0,0 +1,56 @@
+@{
+    Rules        = @{
+        PSAlignAssignmentStatement         = @{
+            Enable         = $true
+            CheckHashtable = $true
+        }
+        PSAvoidLongLines                   = @{
+            Enable            = $true
+            MaximumLineLength = 150
+        }
+        PSAvoidSemicolonsAsLineTerminators = @{
+            Enable = $true
+        }
+        PSPlaceCloseBrace                  = @{
+            Enable             = $true
+            NewLineAfter       = $false
+            IgnoreOneLineBlock = $true
+            NoEmptyLineBefore  = $false
+        }
+        PSPlaceOpenBrace                   = @{
+            Enable             = $true
+            OnSameLine         = $true
+            NewLineAfter       = $true
+            IgnoreOneLineBlock = $true
+        }
+        PSProvideCommentHelp               = @{
+            Enable                  = $true
+            ExportedOnly            = $false
+            BlockComment            = $true
+            VSCodeSnippetCorrection = $false
+            Placement               = 'begin'
+        }
+        PSUseConsistentIndentation         = @{
+            Enable              = $true
+            IndentationSize     = 4
+            PipelineIndentation = 'IncreaseIndentationForFirstPipeline'
+            Kind                = 'space'
+        }
+        PSUseConsistentWhitespace          = @{
+            Enable                                  = $true
+            CheckInnerBrace                         = $true
+            CheckOpenBrace                          = $true
+            CheckOpenParen                          = $true
+            CheckOperator                           = $true
+            CheckPipe                               = $true
+            CheckPipeForRedundantWhitespace         = $true
+            CheckSeparator                          = $true
+            CheckParameter                          = $true
+            IgnoreAssignmentOperatorInsideHashTable = $true
+        }
+    }
+    ExcludeRules = @(
+        'PSMissingModuleManifestField', # This rule is not applicable until the module is built.
+        'PSUseToExportFieldsInManifest'
+    )
+}