During the Great Depression, Godfrey "Smith" Parke is living with other men down on their luck at a New York City dump in a Hooverville on the East River near the 59th Street Bridge. One night, a spoiled socialite named Cornelia Bullock offers him $5 to be her "forgotten man" for a scavenger hunt. Annoyed, he advances on her, causing her to retreat and fall on a pile of ashes. She leaves in a fury, much to the glee of her younger sister and rival, Irene. After talking with Irene, Godfrey finds her to be kind, though a bit scatter-brained. He offers to go with her to help her beat Cornelia.
In the ballroom of the Waldorf-Ritz Hotel, Irene's long-suffering businessman father Alexander Bullock waits resignedly as his ditsy wife Angelica and her mooching protégé Carlo play the game. Godfrey arrives and is authenticated as a "forgotten man". He then addresses the crowd, expressing his contempt for their antics. Irene is apologetic and offers him a job as the family butler, which he gratefully accepts.
Godfrey is shown what to do by the Bullocks' wise-cracking maid Molly. She warns him that he is merely the latest in a long line of butlers. Godfrey proves to be surprisingly competent and resourceful. Irene considers him her protégé, but Cornelia holds a grudge against him.
Tommy Gray, a lifelong friend of Godfrey, recognizes him working at a tea party thrown by Irene. Godfrey makes up a story that he was Tommy's valet at Harvard. Tommy plays along, embellishing Godfrey's story with a nonexistent wife and five children. Dismayed, Irene impulsively announces her engagement to the surprised Charlie Van Rumple, but breaks down in tears and flees after being congratulated by Godfrey.
Over lunch the next day, Tommy is curious to know what one of the elite "Parkes of Boston" is doing as a servant. Godfrey explains that a broken love affair left him considering suicide, but the undaunted attitude of the men living at the dump rekindled his spirits.
Irene breaks her engagement to Charlie. Cornelia plants her pearl necklace under Godfrey's mattress, then calls the police. The police search the butler suite, but find nothing, distressing Cornelia. Mr. Bullock realizes his daughter has orchestrated the whole thing. He informs Cornelia she had better find her uninsured pearls.
The Bullocks send their daughters to Europe to get Irene away from her now-broken engagement. When they return, however, Cornelia implies that she intends to seduce Godfrey. Worried, Irene stages a fainting spell and swoons into Godfrey's arms. He carries her to her room, but realizes she is faking. He puts her in a cold shower, which confirms her hopes: "Oh Godfrey, now I know you love me ... You do or you wouldn't have lost your temper." Godfrey resigns as the Bullocks' butler.
Mr. Bullock has more pressing concerns, however. He throws Carlo out, then announces to his family and Godfrey that his business is failing and he might face criminal charges for embezzlement. Godfrey interrupts with good news: he had sold short, using some of the money raised by pawning Cornelia's pearl necklace to buy up the stocks that Bullock sold. He gives the stock back to the stunned Mr. Bullock, saving the family from ruin, then returns the necklace to a humbled Cornelia. He then leaves.
With his remaining profits and Tommy as a business partner, Godfrey builds The Dump, a fashionable nightclub, creating fifty new jobs for the other forgotten men. A determined Irene finds him and bulldozes him into marrying her, saying, "Stand still, Godfrey. It'll all be over in a minute."
William Powell as Godfrey
Carole Lombard as Irene Bullock
Alice Brady as Angelica Bullock
Gail Patrick as Cornelia Bullock
Jean Dixon as Molly
Eugene Pallette as Alexander Bullock
Alan Mowbray as Tommy Gray
Mischa Auer as Carlo
Pat Flaherty as Mike Flaherty
Robert Light as Faithful George
Grady Sutton as Charlie Van Rumple (uncredited)
Franklin Pangborn as Scavenger Hunt Judge (uncredited)
Bess Flowers as Mrs. Merriweather (uncredited)
Gracie Fields as a socialite (uncredited)
Jane Wyman as a socialite (uncredited)