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This would not seem to be a fair practice, no. But what you must understand is that just because something is unfair does not make it illegal. In fact, most unfair practices do not violate any law at all. Unfortunately, I must tell you that the practice you describe is one of them.
Employers are not required to offer any personal time or sick time at all. So, the law affords employees tremendous discretion with regard to how and when such time may be used. While it is certainly unfair to force employees who have mandatory overtime to use sick time to cover their 8 hours and then personal time to cover the overtime hours, there is nothing unlawful about this practice and so all you can do is attempt to reason with your employer that it should be changed. Beyond this and you would not typically have any recourse.
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