Banked Overtime, Rolling Use, and Payment Credit to the Employer

My question involves employment and labor law as the U.S. Federal Government regulates it:
I'm an hourly non-exempt employee. My employer is enterprise covered under the Fair Labor Standards Act. My employer is allowing me to bank my overtime and I get to use it at straight time when I want to. My employer has been banking all overtime for all employees for 10 years.

Now my employer wants to stop his banking of overtime and start paying time and one-half for hours over 40 in a week. Over the last few years I've banked and used banked hours routinely.

Q: Does my employer get to take credit for my premium pay I haven't used by reducing my bank using the unused straight time portion?
Q: What if my employer dosen't keep track of when wages banked are used?
Q: Help!

Your employer is not legally allowed to bank employees' overtime, even if employees want it. Your employer is not legally allowed to let employees use banked overtime as comp time, even if employees want it.

Your employer is legally required to pay you 1.5 times your regular pay for every hour you work above 40 in any given week, and to make that payment on the next regularly-scheduled payrun. If your employer does anything other than this, your employer will be in deep doo-doo with the federal DOL.

My employer has been banking all overtime for all employees for 10 years. Holy schmidt! Then your employer has been violating the FLSA for ten years. :eek: Unless you work for a government agency (in which case some banking of OT is allowed), then your employer MUST pay you for all OT worked in each 7-day pay period.

Sounds like your employer has very belatedly realized what they're doing is prohibited and wants to get in-line with the law. Whether you want to report the situation to the DOL is up to you.