Cubicle worker Sheila mistakes Linda's comforting hug as sexual harassment, and files a lawsuit. When Ted tries to explain, things go badly and Sheila accuses him of sexual harassment as well. Veronica convinces the company to identify sexual harassment as a disease, but Ted and Linda refuse to be "treated." Meanwhile, Phil and Lem discover that retired robots are not sent to Veridian's "robot farm," and try to save a longtime working associate.