Thank you all for the great input.
I, myself I'm trying to stay out of it because I don't want to be "that guy that comes by once a month and took our internet away". This branch of our company was built primarily by consultants who are now fading away with their contracts, and my brother has decided he wants to run the show by himself.
Most of these workers do finance-related data entry, so they always have work to do. It's not like clearing out an in-box and waiting for more stuff to come in.
When we took this contract the first thing we agreed on was that we wanted to create a relaxed work atmosphere, treat our workers with respect, pay them a very competitive wage, give them good benefits, etc. That's where the consultants came in and they did a great job getting us off the ground.
It is not the most glamorous job in the world, so we gave them very spacious cubicles, top of the line equipment, and many other perks. But now my brother seems to think that not everyone is pulling their weight, so he brought up this idea before productivity becomes an issue.
I guess we'll start by asking the IT guys about the server logs and go from there. We are all for being fair and flexible, but there comes a time when you also have to think about the bottom line, and a lot of companies don't figure this out until they are in trouble.