Last month, Rep. Cathy McMorris-Rodgers (R-WA) introduced the "Family-Friendly Workplace Act" (H.R. 6025).  The bill is an effort to amend the Fair Labor Standards Act of 1938 (FLSA) to provide compensatory time as an alternative option to overtime premium pay.  In her introduction of the proposed legislation, Rep. McMorris-Rodgers explained:

The “Family-Friendly Workplace Act" (H.R. 6025) gives families the option to make choices that work best for them as well as meet the needs of our 21st century workforce. It gives employers the option of offering employees the choice of paid time off in lieu of cash wages for overtime hours worked if the employee prefers to take compensatory time instead of overtime pay. Instead of paid overtime, that employee could choose comp-time and take that time to care for an elderly parent or meet the needs of their kids. An employee would always be entitled to opt for overtime cash wages.

“Time is one of our most precious resources. We all want more of it and yet we only have 24 hours in a day. That means we have to figure out how to work a full day, run errands, pack lunches, make dinner and spend quality time with our kids, spouse, or elderly parent,” McMorris Rodgers says. “Giving employees more flexibility in their workweek is key to increasing retention as well as attracting great employees that will help increase our country's competitiveness.”

Currently, the FLSA requires employers to pay a time-and-a-half premium for all overtime hours -- i.e., hours worked in excess of forty (40) in a week.  The proposed bill would allow employers to provide employees with an option to take an unpaid hour-and-a-half off from work for every hour of overtime worked:

An employee may receive, in accordance with this subsection and in lieu of monetary overtime compensation, compensatory time off at a rate not less than one and one-half hours for each hour of employment for which overtime compensation is required by this section.

The Congresswoman's press release also lists the American Hospital Association, the National Federation of Independent Businesses and the U.S. Chamber of Commerce as supporters. The bill currently lists eleven (11) additional co-sponsors in the House, all Republicans. 

In part, for that reason, today's Employment Law360 report (subscription required) opines "Comp Time Bill's Chances Of Passing: Slim-To-Nil," and notes for good measure that:

...labor unions are expected to staunchly oppose the measure out of fear that it will cut the amount of money going into workers' pockets and erode the Fair Labor Standards Act.

This law has been proposed numerous times before in previous Congresses, most successfully in the mid-90's when a few versions passed the House before stalling in the Senate.  Employers should follow this legislation closely, and ensure current compliance with the FLSA and all its wage-hour provisions.