Red redirects his anger away from Eric onto Earl, one of his slacker employees at Price Mart. This makes Eric happy until Red fires Earl, leaving Eric to question his father's work attitude. Kelso dates Laurie again and the gang isn't too happy with his choice.

Eric is jealous when a picture of Donna mooning the camera appears in the yearbook. Bob is still uneasy knowing Eric is sleeping with Donna, and Jackie's constant affection for Hyde leads to a situation which lands Hyde in jail.