A new lifeguard named Neely Capshaw has been transferred to Baywatch from Huntington. She asks if she can work with Matt so that he can train her in basic procedures. In their tower, Neely comes on to Matt but he rejects her telling her about his relationship to C.J. Later when Matt arrives to Neely's tower she is nowhere to be seen, so Matt is forced to rescue a little girl in trouble. Neely is in her tower drinking alcohol. While Matt is carrying the victim to shore, Neely comes to his assistance. When they have performed CPR on the victim, Matt realizes that Neely has been drinking because he can smell it on the victim while he is doing mouth-to-mouth.
Matt tells Mitch about it and when Neely finds out about it, she bursts into tears and tells Mitch that Matt sexually harassed her in the tower. Matt becomes furious but there's nothing he can do that proves he didn't do it. Therefore Mitch is forced to suspend him, because Neely plans to sue both the County, Baywatch and Matt. When M
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