The firm is trying to work out a labor dispute between the nurses' union and a hospital chain, but even Harvey's closing skills can only do so much against a tough negotiator, played by Margo Martindale. Further complicating matters is the fact that Daniel Hardman is back at work and interfering in the case. Harvey takes that even less well, and it ends up being the nurses who suffer, as Harvey screws them as hard as he can in order to beat Hardman.
Hardman's also messing with Harvey by involving Mike in his efforts with the case, dispatching him for back-channel negotiations with Margo Martindale. Mike introduces her to his Grammy and learns a little about what the union wants and why it wants it, and takes that back to Harvey and Hardman. But Harvey can't stand a win-win situation unless both of the winners are himself, so he uses Mike's Grammy-gotten info to screw the nurses even harder. Congrats, Harvey.
Jessica takes Louis to task about his tendency to make the associates so miserable that Harvard is threatening to stop letting the firm recruit on campus. Louis doesn't mind unhappy associates, but responds by inviting a Harvard rep in to check things out. She's supposed to be like a female version of Louis, and he's into her, but when she tells him that the associates think they work harder than he does, he's so stung he proves them wrong. And impresses Jessica in the process. He's still hurt, though, but at least Jessica seems to realize it.
While not being Harvey and Hardman's unwitting tetherball, Mike stumbles on the news that Rachel's been working on an online dating profile. He helps her with a personal essay in a way that seems to bring about a détente between them, but later she realizes that if he feels that way about her, the only reason he can't be with her is because he's hiding something from her. Mike admits as much to her, but he still can't tell her what it is. And she responds by... taking the LSAT.
Hardman is gracious in defeat, apologizing to Jessica. Neither she nor Harvey buys it, and still refuse to trust him. But his pious act just goes into a higher gear, so he's either become as trustworthy has he claims, or is a bigger snake than ever. At least we have a whole season to find out which.
Mike comes home late at night and finds his apartment door open. He blusters unconvincingly into the darkness that he's got a big gun, then turns on the light and is startled out of his skin by the presence of... Grammy. There's some banter that exposits how she got there, but not why she was sitting in the dark and then Mike realizes that he'd forgot a dinner they had planned. "I have been working so hard I forgot what day it is," he apologizes. She kindly says, "That's what happens when you care about your job. And don't give a rat's ass about your grandmother." '"Well, yeah, that is why I put you in the home," he deadpans right back.
At the firm the next morning, Jessica's in a meeting with the partners and Daniel Hardman. Jessica tries to rush past Hardman's welcome, but he takes pains to remind everyone that he's just a "seasoned advisor. Like Bill to Hillary, if she'd won." Jessica moves on to actual business, namely efforts to avert a nurses' strike. Hardman interrupts again, saying he brought the hospital in as a client, but Jessica's already given this case to Harvey. Hardman wants the file anyway, but Harvey blows him off for now. Everyone's pleasant and polite, but you know they're quietly hating each other.
In Jessica's office after the meeting, Harvey's smugly appreciating the fact that Hardman pisses Jessica off more than he does. But not by much as of last week, Jessica reminds Harvey, even after he bravely liberated her tea set back from Hardman's office. "Put him in his place," she orders.
Harvey wakes up Mike at his cubicle and after some off-color banter about Mike spending the night with his grandmother, Harvey puts Mike on the Prescott Hospital thing, insisting Mike get a summary from Rachel, not caring that Mike just dumped her last week and thus might find interacting with her awkward. "Oh, and I need four bullshit pro bono cases right now." Mike denies having any, being a corporate lawyer and all, but can't withstand Harvey's skeptical glare. "I do it on my own time," he finally says, handing over the files. Sure, he's got plenty of his own time.
In Rachel's office, the request for the Prescott Hospital case files is delivered by... Donna, who's not allowed to say why. "Harvey asked Mike and he was too afraid?" Rachel guesses. "Like a baby girl," Donna confirms. She asks if Rachel's okay after being dumped, which Rachel's not, but she's too busy to do anything but work. "As long as you're making healthy choices," Donna says.