diff --git a/server/core/runtime/run_step_runner.go b/server/core/runtime/run_step_runner.go
index 76629ba460..85b80ccbba 100644
--- a/server/core/runtime/run_step_runner.go
+++ b/server/core/runtime/run_step_runner.go
@@ -88,9 +88,9 @@ func (r *RunStepRunner) Run(
 		err = fmt.Errorf("%s: running %q in %q: \n%s", err, command, path, output)
 		if !ctx.CustomPolicyCheck {
 			ctx.Log.Debug("error: %s", err)
-			return "", err
 		}
 		ctx.Log.Debug("Treating custom policy tool error exit code as a policy failure.  Error output: %s", err)
+		return "", err
 	}
 
 	switch postProcessOutput {