I think people have a hard time understanding company policy does not mean legal. The law is what is legal. Company policy is just what the company decides how it wants to handle something. Whatever it decides still does not mean they are legal. Companies will often try to stretch what the laws says. They naturally try to work it to their advantage. Either way it still does not mean by proxy their policy is legal.

My company had a policy of no comp time. It was an unwritten rule about giving it out. Our local management would just ask us what day off the following week do we want but again officially the company policy stated no comp time was ever to be given.

In 2004 we were changed to hourly by federal mandate.