While in class at Arlen Community College, Luanne recalls her passion for cosmetology after fixing a fellow student's hair out of boredom. She subsequently drops out and decides to pursue cosmetology full time. After learning that she needs only to pass her state board exam (due to having dropped out of cosmetology school in a previous episode) Bill helps her study and pass.
After getting certified, Luanne meets Collete Davis, owner of Hottyz, while shopping for cosmetology supplies. Collete offers her a job, which Luanne accepts. Upon discovering she doesn't have the money for the chair rental, Bill (who was also shopping for cosmetology supplies) offers to split the cost with her.
The next day, Luanne and Bill arrive at Hottyz to work but upon learning that Bill is straight, Collete asks them both to leave. After Luanne pleads with her, she agrees to let them stay the week (as they have already paid a week's rent) but puts them on Chair 5. When Rico (first chair) is too busy to take a local lawyer, she approaches Luanne and Bill for service. However, when Bill attempts to shampoo her hair, she kicks him in the groin. That night, Luanne is lamenting her day when Hank gives her a piece of advice: “Identify the most successful person and work and do what they do”. For Luanne, this means “acting sexy”, for Bill it means pretending to be gay (as he is impersonating Rico who is actually gay). At a club that night, Bill begins to realize that acting gay might not be as easy as he had envisioned John Redcorn spots him and watches him in a puzzled manner. The next day, Hank comes in to Hottyz to support Luanne, and upon seeing Bill dressed in a flamboyant manner, he attempts to question him, but to save his job, Bill pretends they are a couple and “breaks up” with Hank in a loud and emotional manner.
Luanne and Bill's new attitudes get them promoted to second chair (which, according to Luanne is almost as good as first chair). Eventually, they are actually promoted to first chair, but when a client enters and explains that she just got dumped and needs her ex to see what he is missing, Bill is overcome with lust and announces to the entire salon that he is, in fact, not gay. Due to the fact that he seemed mysterious as a gay man, but disgusting as a straight man, Hottyz fires Bill, but allows Luanne to stay.
While drinking beer with the guys, Bill expresses his regret for revealing his actual orientation, and informs Hank that Luanne didn't back him up at the salon going as far as to throw his cottage cheese from the mini-fridge into the street. Hank goes next door and tells Luanne that what she did was wrong and that she should go back to school and take some classes in being a decent person. The next day, Luanne goes into Hottyz with Bill and stands up for him, which gets her fired as well.
As they are packing up their stuff, Hank walks across the road and asks Jack if he wants to hire Luanne and Bill. When he realizes that they were the first chair at Hottyz, Jack hires them on the spot.
In the closing scene, the two are shown working for Jack, Luanne cutting Peggy's hair and Bill cutting Bobby's. Peggy expresses her happiness for Luanne and tells her that she should save her money and move back in with them. Bill then removes the hairnet from Bobby's hair, revealing that he has died it blue. He looks at Bobby and says, “If your Dad says anything, just remind him: it WILL grow back”.
-In this episode, Bill is shown working at both Hottyz and Jack's Barber Shop despite the fact that he is still employed by the Army.
-The title is a play on the 1964 movie, "My Fair Lady", which stars Audrey Hepburn and Rex Harrison.
Hank: It's like my barber Jack always says, “hair grows even during a recession”.
Hank: Luanne thinks the Army is mean.
Bill: I like my drinks the same as my men: strong and sweet. And under an umbrella.
Bobby: Which hair gel to you suggest for my hair type: Virgin or Dirty Girl?
Hank: Bobby, truck!
Dale: Pirate. Gondola. Waiter. Pirate Waiter!
Peggy: "Well you can't do that, there are bigger things in life than hair. You have to stay in college and develop your mind"
Hank: "Well I don't know Peggy, she's been at that college for two and a half years and it's a two year college. Seems like they had a whack at her and nothing took"
Luanne:"It's True! Nothing did!