After noticing that his head writer Jerry has been slacking off lately, Larry realizes that he knows little about his show's staff. Pressing Beverly for detail, he is told that Jerry has been having sex on the set with Sally, a new employee on the show. Learning that he was the only one who didn't know about the affair, Larry demands that Arthur help him become more connected with his staff and, going to see Jerry himself, asks him to rethink his romance with Sally or risk losing his job. While dictating a column for his fan club newsletter, Hank inadvertently tells Darlene to print his observations about Jerry and Sally's having sex in the parking lot. After witnessing the spectacle in the parking lot, too, Larry agrees to fire the head writer himself. However, listening to Jerry plead his case, Larry agrees to give him another chance. Meanwhile, when they are unable to resist each other, Jerry and Sally are spotted by guest Peter Falk having sex in the balcony during the show. After they are called into Larry's office, Jerry is shocked to find that Sally has taken a job in New York in order to be closer to her boyfriend. Then, in the wake of a violent argument between Jerry and Phil, Larry seeks out Arthur's help, insisting that he be distanced from the personal problems of his staff. Finally, when he discovers the mix up in the newsletter, Hank panics upon learning that Darlene is already sending them out to his fans.