Calculating OT Hours

I'm pretty sure I know the answer to my question, but I need some reassurance.
Situation: Employee's vacation account is maxed out at 240 hours, so she is always in a use it or lose it situation. However, when she takes a day or two, she gets so far behind in maintaining her senior citizen program that she works extra hours other days in the pay period and then is being paid time and a half for the extra hours.

As unfortunate as her situation is, I don't believe her used vacation hours should be calculated into hours worked and payment of overtime.

Correct me if I'm wrong. Thanks

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