Beth feels that her long distance relationship has lost its spice and decides to send her boyfriend some naked pictures of herself. Jimmy takes a vacation, but decides to stay in town. More specifically, he decides to relax at WNYX.
Joe discovers that a photo-shoot for models is taking place on the floor above the radio station and finds that the elevator always seems to be occupied by beautiful women. Meanwhile, Bill becomes paranoid about a person who he thinks is stalking him.
Dave faces a dilemma about the placement of rat traps at WNYX when the staff tell him that they feel that the rat, the only one on the floor, is their office pet.
A fight between Lisa and Dave begins to hurt their office relationship. Beth, who no longer wishes to act as a go-between for the couple's secret romance, tries to make the two confess their affair to the staff.
Even a weekend away from work can't bring the staff of WNYX out of the doldrums, which has gone on for a number of weeks now and created problems for the office climate. Although Dave tries to help by having his staff talk about their problems, he is relegated to the role of observer when Lisa's former college psychology professor is summoned once again to ease the office tension.
Due to two very by-the-book security guards, Bill, who left his station ID card on his desk, is unable to pass through the building's security checkpoint. Dave, updating the filing system, hires a temp to help Beth, who learns that the temp is a former high school rival.
Bill approaches Dave about his autobiography, then belatedly tells him to keep his book deal between them. Unfortunately, Dave had already told Lisa, who then announces it before the whole staff. To make matters worse, it seems that Bill is having trouble beginning his life story.
Matthew's recent promotion at WNYX, coupled with family issues during the Christmas season, puts Lisa in a bad mood. In order to look more successful to the rest of her family and herself, she has her agent line up a few interviews for her. Meanwhile, Jimmy announces his engagement to one of thirty-five eligible women who are on a list that he must narrow down.
In order to liven up his life a bit, Bill purchases a cane and begins to act a bit more pompous than he usually does. Dave learns about the station's annual retreat held in Jimmy's office to be creative and come up with new ideas for WNYX.
The Criterion Building's Santa Claus hire threatens Bill's life, but no one believes the radio personality that Kris Kringle wants to kill him. Later, XMas gifts are exchanged between Mr. James and his staff, but the staff feels that their gift to the boss far exceeds the generosity of his gift to all of them.
With little fanfare, Mr. James decides to sell the station to an AM radio conglomerate. Most of the staff are not happy about it and rumors begin to fly about what the future will hold for them.
While Joe puts his signature talents to good use fixing things around the station, Dave informs the staff that cab rides home will not longer be reimbursed by the station. Later, he accidently overhears the staff making fun of him.
Hearing his coworkers talk about the spread in ball games, Matthew enlists Joe to teach him how to gamble. Jimmy informs Dave that the news director will be introducing Bill McNeil at the Broadcasters' Society that evening. He then informs Dave that he will also have to make a speech in front of 1500 people, something that Dave has little experience in and is very nervous about.
A Wall Street Journal reporter comes to interview Bill for an article just as Mr. James begins to celebrate April Fool's Day a bit early. Dave, in order to not show any favoritism towards Lisa, selects Matthew to cover the New Hampshire Presidential Primary. Finally, the news director has Beth clean out the desk of a former employee, and she finds out that the person had a crush on her.
Beth creates a unique hat and needs some pointers from Mr. James about a business negotiation with a company that she wants to make her hats. Lisa pesters Dave for a raise, who tells her that the budget's too tight.
Mr. James' brings his unsuccessful nephew Theo to the radio station for Dave to give him some pointers about the industry. Unfortunately, Dave is rather busy trying to find a replacement for Catherine, who has called in sick.
After months of office phone calls to Stewart, Dave finally tells Lisa that she is stringing her ex-boyfriend along, and Lisa tells him that he is just jealous. Bill and Catherine's fighting at the station perks the antenna of Joe, who is more than happy to assist in the two one-upping each other.
The wife search continues for Jimmy James, who sets up shop in the office in order to find a mate before the end of the fiscal quarter. Meanwhile, Lisa takes her separation from Dave to a new level by writing him memos so she won't have to talk to him.