When Michael slips some sly references about Pam in his conversations with Jim, Jim quickly tries to do damage control to make sure that no one else in the office finds about his crush on Pam, all while slamming himself with regret for ever telling Michael in the first place. Jim goes to drastic measures, even bonding with Michael at a Hooters restaurant for lunch. Nonetheless, Jim's efforts do little to keep Michael from revealing the secret, but Jim smooths the situation over with Pam to make it seem like nothing more than a tiny crush in the past. Meanwhile, Dwight conducts an investigation about Oscar's mysterious absence from work, and what Dwight finds, though it goes way over his head, is surprising.

When Michael unintentionally outs a gay employee, he stumbles through a sensitivity mine-field. Also, we find out what happened with Jim and Pam.

Michael was in the holiday spirit and couldn't wait to share in it with his girlfriend, Carol. He had bought two tickets to paradise, hoping to whisk her away on a romantic vacation to Jamaica. Carol came by the office early to have a talk with Michael and it didn't go well.

Roy stopped by Pam's desk to let her know how excited he was to see her art show. She reminded him that it was just a small show being put on by her art class. Pam later admitted she was very happy she was back together with Roy because it showed maturity. Jim feigns indifference to the reconciliation.