Season 3 finds our hero in the toughest spot of his life - prison! Of course, Earl was only taking the rap for Joy. With his new living arrangements, will Earl start to question this whole Karma thing?
After falsely confessing to a crime so that Joy wouldn't have to go to jail, Earl faces the reality of his actions as he is sentenced to two years in prison.
Earl finds himself compromising his ethics in order to keep Glen at bay; and Joy decides that she needs to teach Randy how to make his own decisions, and be self-reliant.
With karma back on his side, Earl is approached by the jail warden to help resolve one of the biggest problems going on in the jail yard. There are feuding gangs constantly breaking out into fights, and Earl is asked to resolve these gangs' differences.
Earl is visited by Joy and is surprised that another prisoner also in visitation happens to be someone both Joy and Earl know. Frank, an old friend of Earl and an old coworker of Joy, describes how he ended up in prison.
Earl attends a class in prison that focuses on creative writing. After the teacher gave them an assignment to write a story, Earl realized that writing was a lot harder than he expected.
It is conjugal visiting day at the Camden prison. Since Earl has no one to visit him, Frank asks if he will explain to his girlfriend why he cannot be there.
While enjoying TV time in prison, Earl and Randy are excited when they see that the show "Cops" is filming in Camden County. The episode features different types of altercations that are all somehow related to Earl.
A locally filmed episode of the reality TV show COPS features a wealth of bad behavior that is all tied to Earl and the gang in some way; and Kenny happens to have won an auction to ride along with the officers in their police car that day.
The Warden asks Earl to take on a task of forming a skit called, "Scared Straight" that will scare kids from committing crimes and stay out of jail.
As Joy prepares to give birth, she becomes increasingly inpatient and enlists the help of Darnell to speed things along.
After helping the Warden out with numerous tasks, Earl has discovered that his sentence has been deducted to six months left in jail. However, the Warden is now faced in a major dilemma and needs Earl's help.
After all of the early release certificates that Earl has received from the Warden, the day has finally come for Earl to be released from prison. Or not?
Earls lifestyle in prison seems to be transitioning to his regular life outside of bars. He is having a hard time adjusting back to normal life and continues to hold a grudge with karma.
Earl is still lying in the middle of the road next to Billie, both of whom are unconscious after being hit by a car. The accident puts Earl in a coma and takes him to an alternate world in the form of a sitcom.
Real-life events, places and people, including celebrity Paris Hilton, filter into Earl's fevered mind as he lies unconscious.
Earl is still in a coma, but Randy realizes that each item he completes off Earl's list helps Earl get better. After letting fate pick his next task, Randy gathers Joy and Darnell to help him solve the mystery of the stolen motorcycle from the Teutul family.
With Earl still in a coma, Randy and Joy decide to continue crossing items off Earl's list to improve his recovery. Earl's parents went on a vacation and left the house to Earl and Randy.
Randy decides that putting Earl in long-term care is not the best decision, so he decides to take care of Earl himself.
After waking up from a coma, Earl now knew what was important in his life and he was set on going after it. He knew that he had to find Billie, whom he felt karma brought to him to be his soul mate.
After karma leads Earl back to Billie, they decide that they were meant to give their relationship a chance. Billie is inspired by Earl's good deeds and creates a karma list of her own.
Earl is still questioning karma bringing Billie into his life. With the troubles in their marriage escalating, Earl turns to friends for advice.
Resenting the fact that Earl spends more time with his list than with her, Billie tries to get his attention by undoing all his good deeds; and she ends up hiding out with a strict Amish sect, with surprising results.