D.C.
I agree with others. Free play time in the morning is pretty standard, waiting for all the kids to arrive. But free play should not mean out of control. In my daycare, free play times means that activites are out to play, and kids can choose which one they want. But there is a max of 4 kids per activity so that there isn't chaos at any 1 particular activity space.
And the ratio of kids/teachers shouldn't increase (and should be based on the youngest children in the room, not the oldest) even when it is free play time, so there is no excuse for the teachers not noticing a child misbehaving for more than a moment or two.