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No longer a temp, Ryan Howard accepts the sales position vacated when Jim transferred to Stamford, Connecticut. Pam looks at Ryan sitting at Jim's former desk and flashes back to Pam and Jim's kiss prior to his transfer. In the flashback, Jim tells Pam he has wanted to do that "for the longest time" and Pam admits the same. She stops Jim from another kiss and tells him she's still getting married and they say their goodbyes. In an interview, Dwight feigns tears over Jim's transfer, before indicating he's glad to be rid of him.

Michael calls Oscar Martinez "faggy" for preferring Shakespeare in Love to Die Hard. Michael is asked by Toby not to use such terms, but insists it is a harmless synonym for "lame". Toby tells Michael that Oscar is homosexual and finds the word offensive.

Michael approaches Oscar at the copy machine and loudly apologizes and invites him for a beer sometime. In a succession of short on-camera interviews, Oscar reveals that he is gay, Angela Martin indicates she hates the whole idea of homosexuality and the jowls of Kevin's face jiggle as he is unable to manage anything but "Oscar...is gay" through his giggles.

Meanwhile in Stamford, Jim's transfer came with a promotion and a modern office where his desk includes a window view. Co-worker Andy, who sits at a desk in front of Jim, calls him "Big Tuna", in reference to his first-day lunch, a switch from his daily ham sandwich in Scranton. Co-worker Karen, who sits in the desk behind Jim, comments on the faces Jim makes on camera, offers a demonstration and says she doesn't believe he's fitting in. Andy meanwhile, discusses how he doesn't feel threatened by Jim as he thinks he's an ambitious know-it-all, just as he brags about his wild college days at Cornell.

Back in Scranton, Roy brings Pam lunch in a short, awkward exchange. In an interview Pam says she got cold feet, called off the wedding, ended the relationship, and moved into her own apartment. As a result, Roy and Pam plan to eat for lunch the frozen wedding reception meals for the next five weeks.

A disheveled Roy is seen in a mug shot as he recalls how being dumped led him to a downward spiral of weight gain, beard growth and a DUI arrest. Roy claims he has recovered, laments mistreating Pam, and vows to win her back. Stanley's only comment on the breakup is that he gave the couple a toaster, was unable to return the discontinued model, and now has two toasters within his home.

Dwight and Michael worry about other homosexuals working in the office without their knowledge. Dwight recalls Jim mentioning "gaydar" being available for purchase online, though Dwight is skeptical because he believes Jim a liar. Nonetheless the pair phone him in Stamford where Jim pretends to check the availability and reports that gaydar is sold out on the Internet. Also in Stamford, Jim recycles a joke he pulled on Dwight by encasing Andy's calculator in Jell-O, with different results: Andy gets violently upset and kicks a wastebasket as Jim silently returns to work, visibly terrified by Andy's reaction.

Kelly approaches Oscar and tells him that he is "super-cool" for being gay. Jan Levinson informs Michael he has outed Oscar, a personal decision Michael had no business making while Toby points out that Oscar feels discriminated against by Angela. Employees gather around as Dwight looks at gay pornography at Michael's suggestion. Angela makes a homophobic comment which offends Oscar who bumps her as he walks past, sending Dwight into a brief frenzy.

Michael calls an emergency meeting in the conference room and informs the assembled they are all "homos". Pam looks to Ryan as she holds back shocked laughter, (as she would have done with Jim), and is disappointed when he does not do the same. Michael tells Oscar come out to the office formally, "right here, however you want". Oscar does so, and says it is a part of his life he was not planning on sharing that day. Dwight demands "All the other office gays out themselves or I will do it for them."

Dwight then implies Phyllis might be gay. Phyllis takes offense and announces that she is engaged to Bob Vance of Vance Refrigeration. Several employees congratulate her and a surprised, jealous Michael says there is hope for everyone. Following soon after is Phyllis explaining to her former classmate Michael, that they all thought he was gay when they were in high school. Michael immediately springs to his defense after Phyllis remarks about the clothes he wore. Creed, in an interview, states that he probably made love to a man during the 1960s, as he made love to many women outdoors, in the mud and rain.

Oscar announces he can no longer work at the branch and begins to leave, but Michael stops him and tries to hug as a show of acceptance. Oscar blows up and calls Michael "small" which silences the staff in discomfort (all seeming to understand Oscar's comments toward his boss) and reduces Michael to tears. Oscar apologizes and allows the hug to happen. In an interview tidbit, Dwight surmises Michael too is gay. Believing the hug insufficient, Michael tells the staff to "watch this, and burn this into your brains", and kisses a struggling, reluctant Oscar on the mouth. Dwight, who was seemingly moved by Michael's actions, consequently attempts to kiss Oscar. In interviews, Dwight believes Michael is his first gay friend. Michael says any two people who want to should be together. He concludes by saying, "That's what she said...or he said."

Pam looks longingly at Ryan's desk, as Jim simultaneously glances at an empty seat next to him as Mr. Brown directs a humorless diversity training in Stamford. Glancing through his office blinds, Michael sees Oscar catch a ride from Gil, and muses, "Oscar's roommate...I wonder if he knows?" Oscar reveals in an interview that Jan gave him three months paid vacation and use of a company car in exchange for signing an agreement not to sue the company about his botched outing. In Oscar's words, "it pays to be gay".

In the final moments, Dwight opens a package from Jim, a novelty "gaydar" machine fashioned from a metal detector and lettered with the prefixes "Homo" and "Hetero". He confirms the device on Oscar, but is dumbfounded when the device goes off as he inadvertantly swipes it across his own crotch causing Pam to smile.

• This episode marks the second time an expletive has been censored, the first time was in "Diversity Day" and another one was in "A Benihana Christmas".
• Chip Esten's character Josh Porter, the manager at Dunder-Mifflin's Stamford branch and first seen in "Valentine's Day", returns in this episode. This is the first appearance of Stamford employee Andy, played by Ed Helms, as well as the first appearance of Rashida Jones' character. Although her name is not mentioned, the nameplate on her desk reads "Karen Filippelli".
• In the season two episode "Dwight's Speech", Ryan notes that Jim eats the same ham and cheese sandwich every day. In this episode, we see that Jim has adventurously tried a tuna sandwich only to be given a permanent nickname "Big Tuna" because of it. Jim also notes he's been promoted at Stamford, though in "Health Care", he noted that moving up in the company would make paper sales his career, a move which would cause him to "jump in front of a train."
• In his talking head, Andy mentions attending Cornell University and being a part of an a cappella group named Here Comes Treble. Although no such group exists or has ever existed at Cornell, there is an all-female group called Nothing But Treble.
• Dwight says he was unable to tell that Oscar is gay because he's "not dressed in women's clothes." However, in "Halloween" Oscar wears a dress and a woman's wig as his costume.
• Michael mentions him watching the gay-oriented TV series The L Word and Queer As Folk as proof that he has an open attitude toward homosexuals, except he thinks Queer As Folk is called Queer As F***.
• During Jim's first shown meeting in the Stamford office, the unnamed older woman seated to his right has a hair-do and outfit ironically similar to Pam's usual style.
• Near the end of the episode, the character Mr. Brown has his second (but brief) appearance in the series, the first being in the "Diversity Day" episode from season one. He is going over the meaning of "HERO", which was part of his diversity training course. Also, Jim looks towards an empty seat next to him and then his shoulder and smiles. This is also in reference to "Diversity Day" when Pam unintentionally fell asleep with her head on Jim's shoulder.

Ryan: Yeah, I’m not a temp anymore. I got Jim’s old job, which means at my 10-year high school reunion, it will not say “Ryan Howard is a temp.” It will say “Ryan Howard is a junior sales associate at a mid-range paper supply firm.” That’ll show ‘em.

Jim: You have no idea how long I’ve wanted to do that.
Pam: Me too. I think we’re just drunk.
Jim: No I’m not drunk. Are you drunk?
Pam: No. (Jim reaches in for another kiss.) Jim.
Jim: You’re really going to marry him. (Pam nods.)
Jim: Okay.

Dwight: False. I do not miss him.

Toby: Okay, I am telling you, Oscar is an actual homosexual.

Michael: You don’t call retarded people “retards.” It’s bad taste. You call your friends “retards” when they’re acting retarded. And I consider Oscar a friend.

Michael: Maybe we could go out for a beer, sometime, and you can tell me how you do that to another dude.
Oscar (flabbergasted): That sounds like a great, wonderful idea. Let’s do that.

Jim: I can’t say whether Dunder Mifflin paper is less flammable, sir, but, I can assure you that it’s certainly not more flammable.

Andy: Steer clear, Big Tuna. Head for open waters.

Jim: I don’t think any of them actually know my real name.

Andy: I went to Cornell. Ever heard of it?

Andy: I sang in the a cappella group, Here Comes Treble.

Michael: Yeah, I’m sure everyone would appreciate me treating them like they were gay.

Michael: What about Angela? She’s hard and severe. She could be a gay woman.

Dwight: Jim told me you could buy gaydar online.

Jim: Gaydar, um, I think they have it at Sharper Image.

Pam: We still had to pay for all the food. So we froze it. But I’m…I’m doing well. I have my own apartment, and I’m taking art classes, and I have lunch for the next five weeks.

Roy: I gotta win her back.

Stanley: I got them a toaster. They called off the wedding and gave the toaster back to me. I tried to return the toaster to the store, and they said they no longer sold that kind of toaster. So now my house has got two toasters.

Kelly: That is so cool that you’re gay. I totally underestimated you.

Oscar: Yes, I am super cool. I am an accountant … at a failing paper supply company. In Scranton. Much like Sir Ian McKellen.

Angela: Sure, sometimes I watch Will and Grace. And I want to throw up. It’s terribly loud. But I do like it sometimes when Harry Connick, Jr. is on. He’s so talented.

Andy: I need to know who put my calculator in Jell-o, or I’m going to lose my freaking mind!

Michael: I watch “Queer as F***.”
Jan: That’s not what it’s called.

Michael: “Gay Pride Parade.” It’s not like, “Gay Shame Festival.”

Michael: The company has made it my responsibility today to put an end to 100,000 years of being weirded out by gays.

Michael: Gay porn, straight porn, it’s all good.

Oscar: What are you doing?
Angela: Watching some of your friends.

Michael: I don’t care if you are gay, or straight, or a lesbian, or overweight, just get in here! Right now!

Michael: We’re all homos. Homo sapiens.

Creed: I’m not offended by homosexuality. In the sixties, I made love to many, many women. Often outdoors, in the mud and the rain, and it’s possible a man slipped in. Would be no way of knowing.

Dwight: What about Phyllis? She makes absolutely no attempt to be feminine.

Oscar: This has been the worst, most backwards day of my life.

Oscar: I don’t want to touch you! Ever consider that? You’re ignorant. And insulting. And small.

Dwight: Michael appears to be gay, too. And yet he is my friend. I guess I do have a gay friend.

Michael: We’re not in the playground anymore. There are new rules. We have to be mature, but we can’t lose the spirit of childlike wonder. What is love, anyway? Maybe it’s supposed to break all the rules. Like me and Jan. Or Oscar and some guy. Life is short. When two people find each other, what should stand in their way?

Michael: I’m glad today spurred social change. It’s part of my job as regional manager. But you know what, even if didn’t, at least we put this matter to bed. That’s what she said. Or he said. Oh, there’s Gil, Oscar’s roommate. I wonder if he knows.

Oscar: I was going to quit, but Jan offered me a three-month paid vacation and a company car. All I had to do was sign something saying I won’t sue. Gil and I are going to Europe. Kids, sometimes it pays to be gay.