no overtime?

I had an employee who asked me about implementing a program where an employee could switch days so a person could possibly arrange a 3-day weekend without using a vac day and have someone cover for them and work their shift. And that person would agree to do it knowing that they would only get straight time for it even if they worked over 40 hours. I told her that it was not possible because anything over 40 hrs is overtime. She preceeded to tell me her past employer did this without overtime and she worked for a huge company which employs people throughout the U.S.

My question is can this be done and was it only possible because it was a union environment?

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