S03E16: Bye Bye Baby

Peter hires an efficiency expert named Caitlin Mills, who proves to be a headache for Amanda. Alison neglects Billy as her romance with Terry blossoms. Michael, prompted to investigate by Amanda, learns that Peter has been padding his income through a phony research project. Billy discovers that Peter and Caitlin are romantically involved. Jo hires an Englishwoman named Emily Baldwin as her son's nanny. Jo names her son Austin, and plans to move back to New York. Emily offers Jo a ride to the airport, then drives off with the baby.