Phyllis is turning 45 and wants to throw a party to cheer herself up. However, no one can or wants to go. To prove she has friends, she calls Mary Richards. Mary visits.
Phyllis's boss, Dan, asks her to plan his birthday party. She thinks she is invited, but she's not. There is also an ongoing garbage strike mediation meeting with Dan, where Phyllis erupts.
Phyllis's beau Scott confides in her that he is gay. He wants her to pretend they are together to continue to pass as straight in front of his parents. Phyllis believes he should come out of the closet.
Phyllis organizes an office Christmas party to celebrate the season, but her Scrooge of a boss Dan insists Phyllis assist him on a project instead of enjoying the fun and festivities.
Phyllis' boss Dan has been having her work very late and hard at her job. She complains, so they switch jobs as an experiment which results in Nazis invading the Judge's home.