Veridian Dynamics tries matchmaking employees based on their genetic compatibility in hopes of saving on health insurance bills from imperfectly bred children. Ted and Linda balk at this until they meet their supposed matches -- Greg for Linda and Danielle for Ted -- and are instantly attracted despite themselves. Meanwhile, after Veronica finds out Lem is her perfect genetic match, she hounds him to make a donation to a sperm bank

When a misunderstanding leads oddball Sheila to falsely accuse both Ted and Linda of sexual harassment, Veronica comes up with a solution to avoid having them punished. She convinces Veridian to classify sexual harassment as a disease so anyone accused of it can't be held responsible. But when the employees get wind of the new rule, things start to get a little crazy in the office.

After an employee literally drops dead in the midst of Veridian's big push to finish a major project -- a machine that ironically will get people to sleep -- Veronica tries to use the incident as inspiration to make the staff work even harder.

Ted struggles with an overly talkative security guard who worships him and wants to be his best friend. Meanwhile, a terrified Phil and Lem face the prospect of working alone with Veronica for the first time.

Ted romances a beautiful German executive who can't speak a word of English. It doesn't matter Veridian is developing a translation device for her company, enabling the two to communicate. The problem is, the voice of the device is Phil's, which ruins the mood for Ted.

Ted helps his fast talking brother, Billy, get a job selling lab equipment for one of Veridian's biggest suppliers, but no good deed goes unpunished, as Billy proceeds to sell Veridian more equipment than they could ever use and corrupts Phil and Lem in the process. Meanwhile, a charity for girls that Veridian supports gives Veronica an award, but when she and Linda learn that the company actually gives very little of the money it raises to the charity, they set out to make things right.

Veronica is suspicious that Ted might be using his daughter to bond with the boss in an effort to advance his career. Meanwhile, Phil and Lem tentatively start a friendship with Linda.

Phil and Lem embark on a quest to gain respect around the office, Veronica goes on a reluctant treasure hunt inside the Veridian building, and Ted has to confront rumors of staff favoritism.