Mr. Peepers finds himself short of cash and a decent lunch when his first paycheck fails to arrive on time. The home economics teachers, worried about his diet, invite him over to taste their students' cooking projects, and sample some halibut they are about to prepare. The problems begin when Mr. Peepers loses his tie clip inside of the fish. As Mr. Peepers grapples with the halibut, Mr. Feebles attempts to fix the ventilating machine, which proceeds to suck up Mr. Peepers' paycheck, the halibut, and finally, Peepers himself.

In Principal Gurney's absence, the administration of Jefferson Junior High is placed in the hands of the new English teacher and vice-principal Mrs. Clave, an ex-Army officer who fires Mr. Peepers when he stands up for one of his students.