A new law bans smoking in the workplace, to Bill's dismay. Lisa thinks that Joe saw her and Dave at a movie.

Mr. James assigns Dave the task of doling out the annual bonuses. Each staffer gets the standard $400 bonus except for two, one of whom receives a $3,000 'Big Bonus', and the other 'The Shaft'. In the B-story, Bill complains to Dave about all the clutter that mysteriously finds its way to his desk.

A midwesterner gets a job as news director at a New York radio station. He gets an odd reception when his boss wants him to fire his predecessor.

After sparks fly at dinner, Dave and Lisa try to hide their feelings from their co-workers.

Bill invites Beth on a lunch date which she accepts despite Lisa's fear that Bill will take advantage of her. The tables are turned when Beth sticks her tongue down Bill's throat. Dave tries to get to the bottom of WNYX's financial problems.

Dave's old girlfriend Nancy visits, still under the impression that she and Dave are an item. Meanwhile, Jimmy insists Bill interview a 'financial visionary'.

Dave deals with his first challenge as news director when a subway train is derailed. Back in the office, Matthew's new desk causes friction among the staffers, who all want new desks.