Can an exempt manager also work alongside the supervised employees?

In many cases, yes. To qualify as exempt, a manager must supervise two or more full-time employees, have the authority to make hiring and firing decisions, and have “management” as a primary duty (assigning work, evaluating performance, and so on). A manager can meet these requirements while assisting employees in their work.

The federal regulations include a “concurrent duties” provision and give an example that a retail store manager “can supervise employees and serve customers at the same time without losing the exemption” or could “simultaneously direct the work of other employees and stock shelves.”