After calling Oscar Martinez (Oscar Nunez) "faggy", Michael Scott (Steve Carell) learns that Oscar finds the word offensive because he is homosexual. Michael, while attempting to apologize inadvertently outs Oscar to the entire office. Jan Levinson (Melora Hardin) berates Michael for his behavior, after Michael's seminar on homosexuality is a disaster. When Oscar threatens to quit, Michael attempts to reconcile with Oscar, first by hugging him, and then kissing him on the lips. Oscar is given three months paid vacation and use of a company car in exchange for not suing Dunder Mifflin.