Ted decides to try communicating with one of his underlings, Debbie, on the new MRE project that they're working on. She is shy and is unable to say anything to him. When verbal communication fails, there's memos... but the company puts out a memo saying that employees must now
use offensive language instead of not use offensive language. Ted warns Veronica and Linda that things will descend into chaos once everyone starts following the newest company memo. As Ted leaves to talk to HR, Veronica starts to feel a strange itchy sensation. Linda finally realizes that she's feeling guilt, an emotion Veronica is unfamiliar with. Veronica explains that when she was promoted, she was up against Walter Palmer, and she won. However, the memo referred to "him" getting the promotion instead of "her," and Veronica wonders if she got the promotion meant for Walter. Linda suggests that her boss talk to the man.
Ted meets with Janet, the HR representative, but she insists the company never makes mistakes and she's looking forward to telling people what she really thinks... starting with Ted.
At the next MRE development meeting, Phil and Lem have no idea what's going on because they never read their memos. Everyone is tossing out insults, including Linda, and Linda finally shows Phil and Lem the memo. Ted takes control and insists that there'll be no insulting in his team meetings.
Veronica visits Walter, who has been banished to a basement office. He's surprised and touched to see her, and admits that he feels guilty about her promotion, because he mocked her when she got it. Veronica tries to buy him something but it doesn't assuage her guilt. He asks her out for dinner and Veronica initially refuses, until Walter feels even more guilty. Feeling guilty because of his misplaced guilt, Veronica agrees.
After the MRE meeting, Linda says that the company policy is a good thing because employees are finally speaking their minds, including Debbie. She accuses Ted of being a control freak who hates chaos and dresses well, and insists that a little chaos is a good thing.
Phil and Lem read their backlog of memos and Lem vows to start using offensive language. Phil admits that he's never been good at insulting people and Lem offers to help. He starts by insulting Phil.
Ted decides to become more casual and starts with a leisure suit. Linda thinks he doesn’t get it and insults him for real. Veronica comes by and blames Ted for her problems, since he's the one who started questioning memos. During the date, Walter explained that his wife left him, he lost his house, he lives in his parents' dank basement, and his dog has arthritis. Veronica felt so guilty that she let him kiss her and feel her up. Now her breasts are covered with sadness. Worse, Walter comes by and asks her on another date. Veronica would rather buy him a boat, but Walter insists that he'd feel guilty if she did, and Veronica reluctantly accepts his invitation.
Lem begins whispering insults in Phil's ear for him to pass on. They start with Debbie when they meet her in the elevator.
At the next MRE development meeting, Ted tries to take a more relaxed approach but can't help telling people when their ideas are stupid. Linda calls him on it and he reluctantly writes down every idea, good or bad. Meanwhile, Phil tries to insult Ted but quickly backs down.
Veronica asks Linda for help in driving away a man. Linda suggests that Veronica use the words "future," "commitment," and "babies. Veronica has to admit they're pretty terrifying words.
Phil decides to strike out on his own and do his own insults, and asks Lem to guide him. He creates a mathematical insult formula and tries it out, and it works.
Veronica starts spewing out Linda's three words. Unfortunately, the plan backfires and Walter proposes to her so they can start having babies.
After the MRE team meeting, Ted has the new unit made. It's 2' square and very un-portable. Veronica comes by to tell Ted what happens, but he leaves to try and find Phil and Lem. They're wandering around insulting people. Unfortunately, they make the mistake of insulting the water deliveryman, who isn't an employee. He beats them with a plastic water bottle until it breaks. Ted finds them and realizes things have gone too far.
Ted meets with Janet, who dislikes the policy once people realized what her last name is, and suggests that they convince the company that it should create a new policy without admitting it made a typo on the original policy. Janet figures they can convince the company to claim it changed the policy based on an employee groundswell. The memo comes out, and although no one is quite sure what a "groundsmell" is, the insulting stops.
Ted shows Linda the MRE and admits that he took her advice because he cares what she thinks of him. She's impressed and flattered, and points out that Debbie's idea to put in Ethiopian stew worked out well. Veronica arrives and Ted tells her he found the original memo, and it confirms she was the one who was supposed to be promoted.
Veronica tells Walter their dating has to stop... but gives him a better office.
Phil and Lem give flowers to the water deliveryman and he hugs them.
Ted thanks Debbie for her idea and asks if she has any other idea. However, when she suggests they go for dinner and he do what he wants with her, Ted realizes that not all ideas are good ideas.