The hat is given to anyone who works in the Krusty Crew, most notably, SpongeBob and Squidward. The hat is fully white except for a blue anchor in the center, a black ring at the bottom, and a blue curved peak. In several episodes, the hat has a slightly different appearance, such as having a white brim instead of a blue one. The manager employee hat has almost no difference with the regular employee hat, except it is slightly taller, and says manager on it in black instead of having the blue anchor on it.
In the credits of the first movie, a similar hat is worn by SpongeBob after becoming the manager of the Krusty Krab 2. This hat is larger than the standard employee hat, and in place of the anchor is "Manager" in capital letters, going vertically.
When employees wear this hat, it mysteriously stays on even if it doesn't fit. Forces such as wind and water are capable of pushing the hat off.