This season Hank Moody’s life, like the economy, is officially turned upside down. The lack of writing assignments forces him to get a “real” job as a college professor while trying to keep wild child Becca on the straight and narrow with Karen still working in New York. Can he learn to keep “regular” hours and inspire the next generation of scribes? First, he'll have to stay on the right side of the dean of students, the dean’s wife and a teacher’s assistant who’s immune to his charms… Meanwhile, Charlie’s returned to the mainstream -- he’s ditched the porn world for a job at a legitimate agency. His only problem is a boss/agency head who’s more interested in him than her clients (hello, Rick Springfield!). It would all be manageable with Marcy by his side, but she’s still bitter over his affair and is even back on the dating scene, which is further complicated since the two are platonically sharing the house – who can afford a divorce in a recession?
With Karen gone, Hank has to deal with a more and more rebellious Becca. Meanwhile, Charlie and Marcy move back together though they still plan to divorce each other.
Hank starts working as college professor and soon gets into trouble while Charlie interferes with Marcie's romantic life.
Hank attends a university mixer and consoles his jilted assistant; Charlie celebrates his first talent signing.
Hank objects to Becca's adult fashion sense; Hank and Charlie visit a strip club to discover the secret life of a talented student; Charlie and Marcy's house sale goes awry.
Hank has the apartment all to his bad self when Becca visits Karen in New York. Hank's old buddy from Long Island pays a visit. Hank shows him an epic time. Hank and his talented pupil Jackie take their student / teacher relationship to the next level. Charlie and Marcy are finally hitting the sheets again.
Karen hatches a plan to move the family back to New York for good. Hank's mighty pleased, but Becca's crestfallen about leaving her new best friend, Chelsea. After inviting herself to Hank's class, Karen meets the comely ladies of the university: T.A. Jill Robinson and sexpot student Jackie. Later on, tempers flare when Becca and Chelsea get into some serious trouble and Hank and Karen are forced to pay a tense visit to Chelsea's parents, Felicia and Stacy Koons.
Charlie is crushed when Marcy loudly consummates her girlhood-crush on Rick Springfield. But Sue Collini thinks up a creative way to restore Charlie's confidence.
Hank's attempts to set things right with Karen lead to even deeper entanglements with the campus ladies. In the meantime, Charlie tries to prevent Sue's top client from leaving the agency and Becca scolds Hank for being a terrible role model for her.
Hank's in for a hedonistic night to remember when Jackie and two stripper friends arrive at his doorstep, unannounced. The next morning, before Hank can escort his new friends from the apartment, Charlie shows up with a verbally abusive Rick Springfield. Hank’s forced to hide the hung-over party girls all over the house after Jill and Felicia pay surprise visits. The charade reaches its boiling point when Dean Koons arrives on the scene, resulting in a messy catharsis by fire.
When Becca and her friend Chelsea get into a brawl on campus, it leads to the revelation of one of Hank's affairs. In the meantime, Charlie risks his job trying to hold Marcy off drug addict Rick Springfield.
Hank takes Charlie out on the town to drown his sorrows after Sue Collini fires him for causing client Rick Springfield to leave the agency. Meanwhile, Karen, still miffed by Hank's dalliance with Felicia, organizes a girls' night out with Becca and Marcy.
Karen drags Hank to an end of the semester goodbye luncheon at Felicia’s. Hank realizes he’s walked into a hornet’s nest as Felicia, Jackie and Jill all gang up on him. The Hank bashing is interrupted when Richard Bates, the novelist / professor Hank replaced at the college, pays a surprise visit.
As the Moodys at last prepare to move to New York, Becca tells Hank about an intimate coming of age experience she had. Hank’s stunned when Mia shows up at the house unannounced, in town with her slimy boyfriend / manager PAUL for a book signing. Hank fails to prevent Mia and Paul from hatching a devious publicity stunt, forcing Hank to finally share the long-buried heartbreaking secret with Karen. gives Charlie a career opportunity of a lifetime, but Charlie must confront the fact that he might be losing Marcy for good.