PAY OR PLAY – Frasier rallies the on-air talent to back the support staff in a labour dispute with station manager Kate Costas (guest star Mercedes Ruehl). When the staff elects Frasier to battle Kate in negotiations, their unexpected mutual attraction gives new meaning to the term 'labour relations'.
During the Dr. Frasier Crane Show, a swarm of KACL employees gather outside the sound booths, much to Frasier's annoyance when he does not know what the big news is. After his show ends, Frasier goes out to question what is going on, and Roz informs him that the new station manager, Kate Costas, is not going to give the employees a raise that year. However, the on-air talent will continue to receive their raises. Roz convinces Frasier to ask the on-air talent to support a strike against the freeze.
That night, Frasier invites the rest of the on-air talent to his apartment for a party. Niles shows up, and becomes annoyed, until Frasier explains what the party is about. The other talent, namely Bulldog Briscoe and Gil Chesterton, do not wish to strike, until they are convinced by Martin, who points out they could be next.
The following day, Frasier meets with Kate, trying to get the other employees their raise. While he and Kate argue, they share a very passionate kiss. Frasier goes home, distressed, where he tells his family about the kiss. He returns later, and ends up getting the employees a four percent raise.
- Kelsey Grammer as Frasier Crane
- Jane Leeves as Daphne Moon
- David Hyde Pierce as Niles Crane
- Peri Gilpin as Roz Doyle
- John Mahoney as Martin Crane
Special Guest Stars
- Laura Dern as June (caller)
- The story is in two parts, concluding with the next episode, "The Adventures of Bad Boy and Dirty Girl".
- As well as the generic concept, there was a 1991 thriller starring Julia Roberts with the same title.