I work five days a week ten hours a day. My employer pays me eighty eight hours regular and eight hours overtime every two weeks. I am on call twenty four hours a day and dont get paid for my time when called out. Is this ok?

Likely not, but we don't have enough information to tell for sure yet.

What industry?
What exactly do you do?
When does the "workweek" start? The same day as the pay period begins? ( Note, this is not your scheduled workweek)

Explain how the "call out" works.

I work in the oil and gas industry. I am the lead operator for my facility. When a problem arises at my facility and im away in the overnight hours a system calls my cell phone and i have to respond back to the facility. Last week due to call outs i put in oversixty six hours.

Sorry, I don't know what a "lead operator" does. Sounds like your employer may be treating you as exempt, since you get the same amount every week.

Do you have any information about the workweek? And I just wanted to confirm that you are paid biweekly (every other week) and not semi-monthly (twice per month).

Correct I get paid twice a month on the first and on the fifteenth. I take care of oil wells out on the water. I didn't think an employer could classify you as exempt with an hourly rate.

OK, you're paid by the hour, that means, in this case, the employer is treating you as nonexempt.

Semi-monthly is not biweekly. Do you get 88 hours regular and 8 hours overtime EVERY paycheck, regardless?

Yes every check is the same 88 regular 8 overtime. This past christmas they took 16 hours of my regular time and showed it as holiday pay at my normal hourly rate. So in december i had 72 regular 8 overtime and 16 holiday.

I'm just guessing here, but it is possible that the employer is treating you as salaried, nonexempt.
http://www.dol.gov/dol/allcfr/ESA/Title_29/Part_778/29CFR778.113.htm

Is the rate of pay for those 96 total hours the same rate every pay period; i.e., gross pay does not fluctuate? Therefore, using the Fluctuating Workweek method.
http://www.dol.gov/dol/allcfr/ESA/Title_29/Part_778/29CFR778.114.htm

But even if they are doing either, that does not mean they are exempt from the overtime pay requirements; only that the overtime hours and/or premium may be calculated differently.

What does the employer say when you report that you worked, say, 60 hours in one workweek, and you don't get 20 hours of overtime for that workweek? Why do they say you are only getting 8 hours of overtime per pay period regardless of how many hours you work? Honestly, I'd like to know where they're coming from, because I might be missing something.

BTW, semi-monthly pay frequencies do muddle up the clarity of overtime calculations, since very rarely does a semi-monthly period include a full two (and only two) workweeks; therefore it's not always obvious what workweeks' overtime is actually included in any particular semi-monthly paycheck.

Great info. When i talk about sending in overtime my foreman says our company doesnt't like to pay overtime that he will just give me comp time.

Sorry, foreman, comp time is not allowed to be substituted for overtime for private employers (government entities only).

I now have one employee that threatend to quit the company he was on salary getting paid twice a month. The company gave him a salary increase so he would stay. This employee works under me and now gets paid more than i do. I am on an hourly rate and work more hours than he does.

Unfair, maybe, not illegal.

The employee took a chance there also. The employer instead of increasing his salary could have let him quit & he would have been w/o a job & you don't get unemployment ins. when you quit.