We don't have a "set" break schedule, but we have a few smokers who take their fair share. They also bust their asses, so it's all good. We have a solid team and nobody abuses.. About 70% of our people are salary.
Be careful with salary. Salary doesn't mean what a lot of business owners think it means. For instance, both of my designers are salary, yet they still can earn overtime pay, per federal law. They are computer professionals, but they do not make more than 27.63/hr, therefore they are not exempt under the computer professional rule. They are, however, exempt under the "learned professional" rule. We work it out, but just be aware that the rules for who is not eligible for overtime is fairly specific. For instance, an employee who you call a manager; but you do not allow bona-fide input into business operations and hiring/firing, must be paid overtime (that sentence sucks, by the way lol).
A lot of owners learn this lesson far too late, as in when they get sued and have to come up with back pay for multiple employees. I'd just watch yourself. You might have 70% of your employees as bona-fide managers and computer professionals making more than $27.63 an hour or you might not. Just making someone salaried does not exempt them from overtime pay.
I come in about 6-6:30, do paperwork, schedule jobs, start printers, etc. As to my guys, I tell them what time I need them in (typically 9am) but if they need to come in earlier or later, it's OK with me as long as they let me know ahead of time. I'm only a stickler on being on time. If you say you're going to be in at 8am, you better be there at 8, not 8:05. We're done when we're done, although I rarely keep them late. I'm very very flexible on schedules. As long as the work gets done, I don't much care what they do, within reason. There are no scheduled lunch or smoke breaks. Take it when you want, just don't abuse it.
BTW, whats up with you stalking my territory today?
I saw your van this morning on the way to work (around 35th ave and Tbird) and saw your lifted truck on the way home, passing 59th and Bell.