The scene opens, and it seems like Hank and Karen did it! Well, they actually didn't. But the episode did open with the two in bed together. Apparently they had a few drinks; Karen was upset and needed some Moody and Hank obliged, but was a total gentleman. While the ex-lovers are in bed, there's a knock at the door and there is only one person who could possibly arrive at that moment to make things as wacky as possible for Hank - Bates. Yup, it's Bates and he's totally losing it because like Karen, he ended up in someone else's bed last night after a few too many. But unlike Karen, Bates turns into a naked a crazy man when he's drunk, so he's clearly got a reason to worry. Hank consoles, him, casually corrals him into Runkle's bedroom and sneaks back to Karen's side.
So now he needs to get Karen out of the house ASAP and does so by doing what he knows best - acting like an inconsiderate selfish a-hole. He says a few mean words and sends her packing. What's going to happen next in this crazy triangle, one wonders. Later, Hank takes Bates to the scene of his crime because he left his wedding ring at the party. They surely need to get that back. They arrive at a valley-style little complex with a dingy pool and tiny apartments. When they get to their destination, they are greeted by an aging LA stripper whose walls are covered in 80's posters. She is the prototypical ex-White Snake groupie and her attitude, demeanor and bra size fit the bill. Bates goes to puke and Hank gets to talking with the young (youngish) lady. He ascertains that Bates did a sexual number on their new friend. Hank then pays her like $200 for the wedding ring and labor and he and Bates go on their merry way.
Meanwhile, Runkle answers the door to an upset Lizzie, who tells him she's been fired by Marci for attempting to seduce Stu. Her version of the story is that while baby Runkle was sleeping, she decided to go for a swim while Stu and Marci were out. However, she had no bathing suit, so she had to go skinny style. Lizze swims out of one end of the pool and is totally embarrassed to see Stu standing at the water's edge, being totally creepy. Meanwhile, Hank drops Bates off back home, and the poor guy is a wreck. He needs to know exactly what the stripper told Hank about the prior evening, even if the news kills him. In a rare heroic gesture, Hank lies completely and tells Bates that although he wound up in a drugged out groupie stripper's gross love den, that he broke down when it came down to it and didn't seal the deal because he was a loving married man.
Meanwhile, Runkle is at Marci's trying to get Lizzy her job back. Baby Runkle is driving Stu and Marci totally insane, so Runkle has an angle to play. After Marci leaves the room, Runkle hears Stu's version of what happened with Lizzie at the pool. Stu's version basically has the same scene, but with Lizzie's intent very clearly seductive. Meanwhile, Hank is still at Karen's and having a nice chat with his ex, and again there is an ominous knock at the door. It's the Stripper! She showed up with Bates' wallet this time and when Karen sees her, Hank has to lie and say that she's his girlfriend. Obviously, Karen invites the couple inside and you just know it's not going to end well for someone. Lizzie again cashes in on her killer body and finds a way to appear naked in the episode, this time after her shower at Charlie's, and Mr. Runkle manages to appear at the right place at the right time to get a firsthand view.
Soon enough, Lizzie comes on to Charlie and the two take advantage of the fact that they are no longer bound by the employer/employee relationship. Meanwhile, Karen, Hank, Becca, Tyler and the stripper (apparently named Holly) are enjoying a peaceful drink outside. And by peaceful, I mean they are all jaw-dropped, listening to Holly's gross Motley Crew tour stories and overall low-class commentary. The girl is a nightmare and no one but Tyler seems to be pleased. The ladies go inside and Hank and Tyler get a moment alone. Tyler knows something. He asks Hank who the stripper really is, and even asks if Bates is somehow involved. He knows Hank's type and doesn't buy the stripper story. However, let's not forget Tyler is a total bastard, so he angles the situation to his advantage and asks Hank to read his screenplay, of all things. Hank agrees, but isn't happy about it.
Meanwhile in bed after having sex, Charlie gets a call from Marci who is desperate to get Lizzie back. Runkle plays dumb as though he hasn't spoken to the naked nanny, and says he will do what he can if he sees Lizzie. He hangs up, gives the good news to Lizze, who thanks him with a follow-up trip under the covers. Stu's version of the pool scene is looking more and more credible. Back at Karen's, the stripper starts a little dance clinic and when she decides to try to give Tyler an impromptu lap dance, Becca gets a bit physical. Crazy 80's strippers don't like when girls get physical with them and this one tosses Becca across the room. Karen freaks out and throws Holly on the ground and a chick skirmish is in full bloom.
Bates arrives out of nowhere, screaming, about to kill the stripper, when Hank gives him the signal that he's in the clear and no one knows who she really is. Bates realizes what's going on and leaves in a hurry, but not before he grabs a bottle of rum first. A close call. Hank has saved his ass big time. But the damage is done. On his way out, Becca makes sure to let Hank know that she hates him at that moment, and that his constant magnetism to trouble is exhausting and getting old. She tells him off and Hank is crushed, but must leave and take the stripper with him immediately. The episode ends.