Jake and Jo are forced to submit to AIDS tests after his ex-girlfriend Peri reveals that she is HIV positive. Unable to cope with their anxiety, Jake and Jo take off on his bike and spend the night in the desert. He apologizes for the situation, and they confess their love. They declare that they will appreciate their lives more, regardless of the test results. Their tests come back negative, and Jake offers his support to Peri. Billy uses an embellished résumé to win a job at Escapade Magazine. His boss, Nancy, develops a crush on him. Alison returns to D&D and begs for her old job. Unfortunately, Amanda is in charge of hiring for the position. She lets Alison work as a receptionist, until Lucy forces her to re-hire Alison. Amanda continues to treat Alison badly, but denies that it has anything to do with Billy.

One of Billy's co-workers discovers that he lied on his résumé, and reports him to Nancy. Nancy assures Billy that she hired him for his talent, and gives him a writing assignment. After he does a great job with an article about a dog wedding, she promotes him to staff writer. Amanda continues to give Alison a hard time at the office, so Alison retaliates by erasing Amanda's messages to Billy. Amanda crashes a celebration dinner for Billy and lets him know that she has been calling. Alison takes Billy out to lunch and grows concerned by the amount of personal attention Nancy is showing him. She warns that Nancy may be attracted to Billy, but he takes offense to this. Alison makes a special dinner for Billy and apologizes, but he ignores her and goes back to the office. Nancy makes a pass at him, and takes away his promotion after he turns her down. He threatens to quit, but his lecture inspires her to apologize and restore him to staff writer. Michael grows more concerned by his attraction to Kimberly. She confesses her love to him, and they kiss in the hospital parking lot. Michael gives Jane the cold shoulder, and later goes to Kimberly's place and begins an affair with her. Matt gets a date with a lawyer, but the man turns out to be an egomaniac who only cares about material items. Rhonda annoys Matt by pushing him to give the guy another chance. He says that the fact that he is gay doesn't mean he has to settle for just anyone.

Billy and Alison's new relationship is torn apart when Amanda discovers that she is pregnant with his child. She insists that he is not obligated to take care of her, but he feels that he must take responsibility for his child. Michael breaks off his affair with Kimberly, and enlists Alison's help to arrange a meeting with Jane. He begs Jane to give him another chance, and she agrees to attend couples' therapy. Jo's nights out partying with Karen come to an end after she makes passes at both Jake and Jo.