Ted talks about how relationships at work form, and sometimes they go out of control. He insists on keeping things professionally… except with his daughter, Rose. He meets with her during his coffee break, and Veronica encourages their roughhousing and suggets she hit Ted with a phone. She wants to talk to Ted about a sexual harassment problem. In private, she explains that one person is accusing another of sexual harassment, and Legal won't tell her who. Ted goes to the cubicle to see if he can find out who is filing the suit.
Phil and Lem get word that their toxic spill clean-up robot Chumley is being retired. It's being replaced with Carlos, a human technician who requires less maintenance. Phil worries about a world where machines can so easily be cast aside in place of humans. However, they've been told that robots are sent to the robot farm for retirement.
Ted tries to get Linda's input, and she reveals that she's the one accused of sexual harassment. She tried to comfort Sheila when she lost her cat, and her hug was misinterpreted. Then she gave her a tension massage and that was reinterpreted as well. Ted goes to Sheila to try and explain that it was a misunderstanding. Unfortunately, he suggests that she should get to know Linda, and maybe he should go along with them.
Sheila takes that the wrong way as well and files another sexual harassment case… against Ted. Veronica tells him to stay out of it while she deals with the situation. Meanwhile, Phil and Lem come to see Ted and ask him to confirm that there's a robot farm. Ted finally admits that the robots are sent to the basement and broken down for parts.
Veronica goes to see the lawyer handling the sexual harassment cases. The secretary explains that he's in treatment for alcoholism and the company can't touch him because it's a disease. Veronica has an idea and has sexual harassment categorized as a disease. Since Linda and Ted can't be held responsible, their jobs are safe. The people upstairs are glad to do it, but Ted and Linda insist on refuting the charges rather than going to a seminar. Veronica warns that if they fight and lose, they'll be fired.
Phil and Lem go to the basement where the robots are sent for deconstruction. They find Chumley and resolve to fix it.
Ted and Linda go to the seminar and protest their innocence. That's a symptom of a sexual harasser, and the head of the seminar, Denise, says that they'll have to be emotionally honest to prove they are "cured."
Veronica discovers that employees are taking chances and flirting more now that they can't be sued. One of the men from seminar hits on Linda, but she responds by insulting his genitalia. She soon realizes that since they can't sue her, she can say whatever she wants.
Phil and Lem reassemble Chumley. However, Carlos takes offense and insists the future of floor cleaning is humans. Worse, the robot goes out of control, sprays Lem in the face, and starts running across the floor.
Ted tries to be more emotionally open with the janitorial staff, and makes sure to get testimony. Meanwhile, Veronica discovers that the flirting is disrupting productivity. Everyone is making out with everyone and there's nothing she can do about it.
Phil and Lem ask Ted for access to the robotics lab so they can fix Chumley. He tells them to let it go and then deals with a female worker that thinks he's attractive. Ted has no choice but to refuse so he won't fail his sexual harassment He goes to see Veronica, but they start flirting. They try to keep control of themselves but fail… until Rose comes in for a snack break.
Another worker from the sexual harassment goes after Sheila, but Linda starts sexually harassing him. Sheila thanks Linda, who apologizes and says she should have respected Sheila's boundary. Sheila admits that she might have overreacted and drops the lawsuits.
Phil and Lem return to the lab where Chumley is running amuck. Carlos takes out the robot with his mop and they thank him, realizing they had an inappropriate reaction with a co-worker.
Ted and Veronica figure out a way to end the problem: have the children from aftercare come in. They'll be marched through at random intervals. Ted apologizes but Veronica tells him to forget it, and it'd be a bloodbath if they ever really got together. Linda spots him watching Veronica walk away and vows to fight sexual harassment with sexual insults no matter where it occurs. And Rose hits Ted with a telephone.