Jake comes into the lodge with a ventriloquist dummy that one of the guests left behind. Using the dummy he starts making fun of and insulting Mr. Ernst to Melody. Mr. Ernst appears from behind the counter where he was picking up fishing lures and tells Jake that if he does one more thing wrong he is fired.
Jake appears on the dock wearing a dunce hat and a kick me sign. Jake tells the others that he has to clean out Uncle Ben's boat. Jake starts throwing garbage out of the boat and pulls something and water starts spewing in. Jake panics and takes off. Mr. Ernst arrives and sees his boat filled with water and demands to know who is responsible. Melody says it was the new kid, Jed, that Lucy hired today. Mr. Ernst says he didn't know and to have Jed come to his office to sign the payroll forms. The kids leave and realize they have a problem because Jed doesn't exist.
Mel and Brad enter Mr. E's office and tell him that he has to choose between two types of chlorine. They hand him two fishbowl containers of water. While he is looking at the water in the light they sneak out and lock the door. Jed aka Jake with a disguised voice is outside the door, but he can't get in because the door is locked. Since he has his hands full Mr. Ernst can't unlock it so he slips the papers under the door for Jed to sign.
Mr. Ernst hangs up the new work schedule on the lodge bulletin board. The kids see that Mr. E has given Jed numerous work assignments. They decide to split up Jed's work between them. Brad wants to tell Mr. E the truth, but Mel and Jake talk her out of it.
Two days later and the kids are exhausted from doing the extra work. Mr. Ernst comes and says that he wants to speak to Jed. The kids says they will go get him. Mr. E asks Buddy about Jed. Buddy tells his dad that Jed is from Chicago, and he worked on his moms worm ranch, plays the guitar and speaks Japanese. Jed aka Jake with a box on his head arrives. Mr. Ernst asks why Jed is wearing the box. Danny tells him Jed has photophobia and can't be exposed to light for twenty four hours. The others take off leaving Mr. Ernst and Jed to have a little chat. Mr. Ernst tells Jed that he is pleased with his work and he is being promoted to Co-Senior Staff with more responsibility but a bigger paycheck.
The kids are upset about Jed's promotion and try to come up with a way to get rid of him. Ted suggests having Jed get fired. Danny asks how you get someone fired who doesn't exist. Jake says they just create a Jed.
In the lodge, Danny, Jake, and Jed (who is actually a dummy with a hat on) are at the front desk. Mr. E is behind them and Jed is insulting the other staff members. Mr. E goes to confront Jake, but they take off before he gets the chance. Brad suggests to Mr. Ernst that he fire Jed, but he tells her that they just have to give Jed a chance because he is new.
In the shed at the coral, Jed is insulting Mr. Ernst. Mr. E goes to confront him, but Ted "accidentally" hits him with a bucket of water. Ted grabs his glasses to dry them off. After some more insults, Jake and Jed emerge from the shed and Jake starts beating up Jed. Jake whips Jed over the coral fence and Mr. Ernst tells Jed that he is fired. Mr. Ernst didn't see a thing since Ted still had his glasses, which he returns. Mr. Ernst thanks Jake for standing up for him.
At the boat dock, the kids try to figure out who did their chores. Danny's fence work was repaired, Jake's shed painting was done, the girls stalls were cleaned out, and Ted's wood was chopped, but none of them did it. Mr. Ernst comes paddling in in the canoe. He tells them that Jed did the chores. Jed returned and apologized for everything and he decided to hire Jed back and he paddles away.
On the porch of the boy's bunkhouse, Jake is panicking because Jed came to life. Ted thinks there is an explanation, and Danny thinks Mr. E might just be insane. Brad and Mel come running up and they tell the boys that they overheard some guests saying how great Jed treated them. Ted enters the bunkhouse and sees an extra bunk that is disturbed. While everyone is trying to figure out a logical explanation a young man enters the bunkhouse. He apologizes to Jake for fighting with him. Jake asks the man who he is and he tells him Jed. The kids tell Jed they made him up and that he doesn't exist. He should just disappear before they all go insane. Jed agrees to disappear and just then Mr. Ernst enters takes the gangs picture. Mr. Ernst tells them that Jed is really Andy Ryan from the Double B ranch. Mr. Ernst says he knew that they invented Jed because Lucy would never hire anybody with checking with him first. He just wanted to see how far they would let it go and he wasn't disappointed with the end result.