Jackson and Grady Rhames attempt to save their family hip-hop record label, Sweetback Entertainment, while trying to recruit new artists and deal with poor record sales, a possible corporate buyout, and the potentially violent situations that arise from running the label.
Conflict manages to steal Versis from Sweetback, but when he takes Grady and Jackson's underage sister to a club, he threatens her safety when tempers go flaring and gunshots are fired. Meanwhile, Sweetback comes under fire for its lack of investment in the black community.
Jackson intervenes in a tempestous romantic relationship between one of his musical discoveries, Lady Bryce, and her lover. Max, meanwhile, comes to Jackson seeking help with her money troubles.
Jackson must appease his artists during a music video shoot.
When a videotape is found featuring one of Sweetback's artists, Mace, committing a sex crime, the label heads debate over whether or not to give the tape to the police.
Baby sicks a henchman on Max when he learns that Max convinced the Parole Board to keep him locked up. Devon takes steps against Jackson which has consequences for Lady Bryce and the future of Sweetback. Meanwhile, Grady finds himself falling for Kari.