Gavin starts a rumor to keep Dylan and Jake apart, Claire figures out that Penny likes Jake, Frank is employee of the month so he needs a haircut, Jake kisses Penny just as Dylan finally has a realization.

The plots of interoffice romance thicken as Jake becomes more involved with Penny, and Dylan begins to feud with Gavin.

Dylan and Gavin can't agree on which dog to adopt that symbolizes their commitment, and Jake and Penny can't have a relationship at Dylan's apartment.