In deep learning (DL) systems, label noise in training datasets often degrades model performance, as models may learn incorrect patterns from mislabeled data. The area of Learning with Noisy Labels (LNL) has introduced methods to effectively train DL models in the presence of noisily-labeled datasets. Traditionally, these methods are tested using synthetic label noise, where ground truth labels are randomly (and automatically) flipped. However, recent findings highlight that models perform substantially worse under human label noise than synthetic label noise, indicating a need for more realistic test scenarios that reflect noise introduced due to imperfect human labeling. This underscores the need for generating realistic noisy labels that simulate human label noise, enabling rigorous testing of deep neural networks without the need to collect new human-labeled datasets. To address this gap, we present Cluster-Based Noise (CBN), a method for generating feature-dependent noise that simulates human-like label noise. Using insights from our case study of label memorization in the CIFAR-10N dataset, we design CBN to create more realistic tests for evaluating LNL methods. Our experiments demonstrate that current LNL methods perform worse when tested using CBN, highlighting its use as a rigorous approach to testing neural networks. Next, we propose Soft Neighbor Label Sampling (SNLS), a method designed to handle CBN, demonstrating its improvement over existing techniques in tackling this more challenging type of noise.