Then you have been lucky. My co-worker had his tucked inside his shirt for the very same reason you mentioned. He wore it around his neck with a strap so it would dangle in front of him. An FAA inspector saw him, asked him where his badge was and when produced, was blessed with a ticket of some sort. Wasn't a fine so I guess some sort of warning.
Like I said before, it must be visable on your outer most garment above the waist. And unaltered. Some newbie inspector looking to make points with his boss could easily say a rubber band conveniently over the name portion of the badge is altering it. Not trying to nitpick, just stating what I've seen and think.
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