I work as a Staff Accountant for an accounting firm in Florida. On my employment offer I was listed as a salaried employee with my annual salary printed. On my third day of employment, I was told I needed to punch a time card and I quickly became an hourly employee and it does show on my paycheck as a per hour wage. When questioned, I was told that the employer does not pay overtime in excess of the 80 hours (biweekly pay) but the time goes into a "kitty" for you to draw on if for any reason you work less then the 80 hours or want time off since this employer does not offer sick or vacation time. During tax season I have raked up in excess of 120 hrs of overtime.

In previous jobs and other states I have worked in, this practice is not legal for non-excempt employees. The employer has had to pay overtime at 1.5 times vs comp time. I am having a hard time finding anything on the web in the state of Florida short of contacting an attorney. This employer is in the habit of using people during tax season and then terminiating their employment but not paying them any accrued time off they may have and I am afraid I am next.

Can the employer do this to an hourly employee and what if any legal recourse is there if I was to be terminated before I use up this comp time?

This is confusing. If you are salaried, then banking the time/pay to use as comp time is acceptable. If you are hourly, you should be getting overtime. I tend to think this is a do whatever they want situation. You are both exempt salaried and hourly, so they can play things however they want. As for action, it sounds like you have a FSLA claim. Fair Standards Labor Act
http://www.dol.gov/elaws/flsa.htm
You can call the FL Dept of Labor for more guidance, but I think this is the type of claim for your situation.