We open on Ray leading detention. By "leading," I mean writing in giant letters on the chalkboard (those still exist), "Where did I go wrong?" He starts lecturing the detention crew, when Damon walks in with another guy. They both sign in, and sit down. Ray calls Damon into the hall, where he asks him what he did to get detention. Damon plays dumb, saying he didn't do anything. Hal (or Pal? Powell?) called Mrs. Butchik "Mrs. Butt Cheeks," but he didn't do anything. He is just here to hang out with his friend. Ray assumes Damon would only do this for someone he likes as more than a friend, so Damon asks if he's homophobic. Then he adds that Powell doesn't like labels and neither does he. Ray VO's that he and Damon used to tell each other everything, so this really isn't about him being homophobic. He even admits George Clooney's handsome.

Tanya calls Horny Patty from last week (while they're both at work) to find out how it went with the Happiness Consultant. Patty tells Tanya she's working and doesn't want to talk about it. She tells Tanya to let it die and hangs up. Tanya clearly doesn't let it die, though, because she's hounding Patty about it in the breakroom later, asking why Patty isn't happy if the sex was so great. Patty asks Tanya if she's ever done cocaine. Tanya sighs, "No, uh, I tried peyote a couple times." Patty explains that having sex with Ray is like coke: a big awesome rush, but too expensive, so when you come down off that high, you feel even worse than before and now you want to kill yourself. Tanya asks what would make Patty interested in being a repeat customer, and Patty says maybe if he were like crack, "you know, cheap, same high, half the price."

Tanya's grilling a sandwich for Ray as he confides to her that "I think ... my kid's a gay." Tanya tells him that's great and not to worry, because lots of kids experiment with their sexuality. She starts to talk about her past thing with a woman, but Ray tells her he's not interested in her lesbian past, since this is a business meeting. Dude, Ray, you started it. Tanya's willing to move on to business, though, and she tells him they might need to lower their prices. He says she's the one who said they'd be able to clear two grand a night. She blames the economy, but then her phone rings. She freaks out and tells Ray to hang on, because it's Pierce. She talks to Pierce, who's in Cuba. He tells her he misses her, it's a long story, he'll be back in a few days. He tells her he's running out of minutes, but he loves her. Ray tells Tanya she spends all her time with her new boyfriend while their business is falling apart. Tanya tells him she knows he's upset about Damon's homosexual tendencies. Ray reminds her he promised his kids they could move back in, and his house isn't going to fix itself. He wonders who he has to fuck around here to get his kids back. Only he means it literally. Tanya tells him she's trying. Then she says it doesn't sound right to say "my kid's a gay," and he should just say "my kid's gay."