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SpongeBob wakes up Squidward for work one morning, trying to be a "good neighbor", but Squidward angrily tells him that it is Sunday and that "a good neighbor doesn't bother me on Sunday". SpongeBob believes that Squidward is grouchy because he hasn't gotten his sunday paper, and tries to give it to him. He bumps into Patrick who is startled by the "newspaper monster". Upon hearing of the monster, SpongeBob and Patrick start to panic ascathed scatter the paper into the air as they run around.

Squidward begins his Sunday relaxation, when SpongeBob and patrick suddenly appear behind him wearing cultist-style fezzes and initiate him as president of the "Secret Royal Order of the Good Neighbor Lodge", which Spongebob and Patrick have just made up. Squidward tells SpongeBob and Patrick to paint all of the tree leaves around town with polka dots to get rid of Spongebob and Patrick. Outside, SpongeBob absorbs a can of red paint, Patrick pulls his arm like a lever, causing him to shoot specks of paint onto all the trees. At noon, SpongeBob and Patrick return to Squidward to tell him that they are almost done with their task, and SpongeBob accidentally shoots paint on his face and in his eyes. Squidward runs outside, screaming in pain, and is almost hit by a car that Debbie Rechid and Ralph turn out to be driving. They think that he is sick with chicken pox and takes him to the hospital.

Later, SpongeBob and Patrick hold a club meeting, and notices that Squidward is gone. They go inside his house to look for him, when a foot massager arrives to give Squidward a pedicure. When Squidward comes home, he finds SpongeBob and Patrick getting a pedicure to make sure that he "really is a certified foot masseur, and not some sort of assassin". Squidward pushes them aside and angrily demands the man to massage his feet, but he tells him that his hour is over and leaves. Furious, he makes SpongeBob and Patrick to leave, telling them to never bother him again.

Unable to understand that Squidward hates them, SpongeBob thinks Squidward was trying to tell them something. Upon hearing this, Squidward literally breaks his head through the front door and screams to them that "they're the worst neighbors EVER!!!" before taking their fezzes and stomping them onto the ground. Inside his house, Squidward sees his Sunday paper in a messy pile on the floor with a note from SpongeBob presenting it to him. Furious about this ("Good neighbors, my right!"), he kicks the paper until he sees an ad in the newspaper for a high-tech security system, which he gets and installs into his house. 

Squidward believes that the security will stop SpongeBob and Patrick from entering his house, but they suddenly come up behind him with an apology cake (and their fezzes back on). Squidward demands the security system to destroy them, but the machine says "No Threat Detected." Squidward then punches the machine in frustration, and the machine says "Threat detected". It then begins malfunctioning and declares a "code red" situation, literally kicking Squidward out of the building. The house then grows arms and legs and walks away with SpongeBob and Patrick still inside. Squidward then realizes that they can now no longer bother him and tells himself that "he is going to relax if it kills him."

Meanwhile, Squidward's House rampages through the city, and SpongeBob and Patrick turn the security system off just as the house returns to its original position, causing it to fall on top of Squidward. His Sunday relaxation time over, he calmly has SpongeBob and Patrick leave so he can get ready for work the next day. However, he finds an angry mob outside of his house, and a man gives him a summons that has him doing community service every Sunday for the rest of his life to pay off the damages to the city. SpongeBob and Patrick each get a summons as well. They look forward to cleaning up Bikini Bottom together and say that they will see "President Squidward" again next Sunday. Squidward has a nervous twitch.