Claude is put in charge of organizing the GNB on-air holiday greeting, but is alarmed to learn that there are strict criteria to determine who can represent the company - putting her in hot water with Owen, Ramona and Carl, to whom she had promised an appearance. Meanwhile Lydia refuses to rearrange her holiday plans with Jeb when he announces they must accommodate his son, George, and Kipp and his new girlfriend, Annie, encounter holiday relationship turbulence.
The crew arrives at GNB's annual retreat to discover former human resources representative Schmidtline fired up to point out all their workplace flaws. Claude struggles to lead the group in a team-building task, and when things go poorly, they decide to go AWOL to a casino. Meanwhile, Will and Jeb are left to fend for themselves in the office, but neither can figure out how to make a conference call.
Claude's ex-boyfriend, Charlie, returns to GNB and they decide to give their relationship a second try, so Ramona convinces Claude to buy some sexy lingerie to reignite their passion. Meanwhile, GNB has upped security and reinstated the studio tour, putting pressure on Ramona and Owen to perform as if they had an audience; and Jeb at last seems to appreciate Kipp's work, but he changes his tune when Kipp's great story idea (men with silly beard styles) results in horrible reprocussions.
Carl's girlfriend, Viv, is friendly to everyone except Claude who, she thinks, is trying to steal Carl away from her. But when Carl breaks up with Viv for ridiculous reasons, Claude makes it her goal to get them back together. Meanwhile, Lydia convinces a restaurant to add Jeb's image on their famed wall, which forces Will off the wall.
Claude's boyfriend Charlie temporarily moves in after his landlord pays him ten thousand dollars to move out. However, when Charlie becomes too comfortable with his new wealth and free living arrangements and begins holding auditions for his new band in her apartment, Claude questions her decision . In the meantime, Lydia wants Jeb to take dance lessons to prepare for their wedding, and Owen is the perfect teacher.
Will loans his beach house to Claude and Charlie, who find that the uninvited Lydia and Jeb are there. Meanwhile, when Ramona's computer crashes, she finds herself oddly attracted to the dorky software technician; Will's water-massage-table arrives after his departure to Aspen, where he intends to break up with his girlfriend; and Kipp and Carl compete to win the affection of a lovely news producer.
Claude steps in to help Lydia and Jeb with their pre-nup, but finds she may have opened a Pandora's Box. Owen offers to help Claude with Will's fan mail, and forges a relationship with one fan in particular, Louise. But when Louise (played by Joan Rivers) shows up at GNB to meet Will, it could be trouble for everyone. Meanwhile Ramona cooks up an internet auction scheme to get back at Kipp for insulting her.
Claude wins an extreme apartment makeover by the ""Extreme Makeover: Home Edition"" design team at a charity auction. While the designers (and Owen) redesign her apartment, Claude has to spend the night at GNB -- where there is a surprising amount of late night activity and intrigue. Upset over his breakup with Lydia, Jeb bonds with Carl and the two go on a bender; Lydia arrives in hooker attire, claiming that she's fleeing the police; and Kipp makes out with the cleaning lady.
To complete the GNB Management Training Program, Claude and Kipp must supervise a department. Claude is assigned to Supplies, where she struggles to assert her authority over hypersensitive Owen. Meanwhile Kipp is assigned to Operations, which he soon learns is the janitorial department. At first appalled at blue collar life, Kipp later embraces his new masculine side. Lydia fills in as Jeb's secretary, which proves awkward since they've broken up. Carl recieves 18 health code violations in the cafeteria, but the inspector agrees to wave them if he'll sleep with her.
Claude encourages Charlie to audition for a band, but she's dumbfounded when he reveals he got the gig and has to leave town indefinitely. Will wins Kipp from Jeb in a card game and gives him to Claude as a gift -- so Claude willingly lets him do her job. Meanwhile, Ramona and Owen plan a surprise birthday party for Carl. Depressed over her breakup with Jeb, Lydia (""the spinster Weston"") becomes Owen's ""pancake whore,"" but Claude interferes and Lydia winds up having an impromptu wedding with Jeb at Denny's.
Upon returning from vacation, Claude learns that her boss, network anchor Will Butler, has resigned, leaving her jobless. Luckily her trusty friends, Owen and Ramona, have secured her a position as a temp on the 4th floor, right back where she started three years ago. Jeb Denton, the new anchorman, has promoted his wife, Lydia, to producer, and Claude's worst nightmare comes true when she's offered a job as Lydia's assistant. She hesitantly accepts the job on condition that she be given more responsibility, but working for Lydia proves to be a dangerous bargain. Meanwhile, Owen becomes addicted to Carl's new soft serve ice cream machine.
After quitting as Lydia’s assistant, Claude is back to “floater” status. However, the only spot available is working with Lydia, so Claude reluctantly agrees to work for her, but with conditions. Lydia’s first major assignment is to produce a complicated segment for the news. She pretends to have everything under control, but ends up breaking down and begging Claude for her help. Claude saves her only after she’s given a raise, a promotion and an apology. Meanwhile, Ramona gets a call that she may need to quit and return to the National Guard, leaving Owen and Carl freaking out.
After a long week, Claude, Carl, Ramona and Owen enjoy a night out for happy hour at their favorite bar. A little tipsy, Claude and Carl head home and, when one thing leads to another, they end up in bed together. They decide to keep it a secret from everyone at work to protect their friendship, but their attraction to each other makes it difficult. Meanwhile, Jeb incites a power struggle between Lydia and Kipp to keep them both
Ramona detects with her "laydar" that Claude and Owen are sleeping together. Owen's in the dark until he walks into Claude's bedroom -- where it's not dark. Meawhile, Jeb & Lydia are constantly fighting at work, and Kipp loses his trust fund and looks to Ramona to help him budget his money, and Owen shops for a new doorknob.
Claude is concerned when Carl doesnt seem to be affected by her flirting with Ethan (Joey McIntyre), the copy repairman. Meanwhile, Ramona finds out that Kipp is making money on the side as a foot model, and she demands to get involved. Owen takes the photos of their feet together, but when they find them online, it turns out that someone has turned their shoot into a bizarre sexual scene.
When Kip reveals he lost his apartment with his trust fund, an unwitting Carl takes him in. Kip then gives advice to Carl about dating Claude. Kip reveals, through their hatred, he knows a lot more about Claude then he thought. Ramona and Lydia listen to Claude talk about her and Carl's relationship. Meanwhile, Jeb receives a watch from Lydia that he hates. But in the hands of Owen, it's not safe.
When Lydia feels like she doesn't get enough recognition, Jeb and Claude concoct the idea of giving her a fake award. But, the pair get too over their heads after Lydia gets too excited by the award. Owen shows off his carpentry skills to various employees. And Claude accidentally belittles Carl, which puts a strain on their relationship.
After listening in on Lydia's phone call, Claude realizes that Lydia's about to cheat on Jeb, so she intervenes... but she later comes to regret it. Meanwhile Owen decides that he's going to seduce Lydia; and Jeb's plan to roast his boss takes a drastic turn when he loses his voice and sends in Kipp to give his speech.