Taking vacation time

Our firm has a very lose policy on vacation time and when/how it can be taken.  There are 5 non-exempt employees and the owner.  (I think some of the classifications are wrong, but that is another post)

The boss wants to implement a policy saying vacation can only be used in 8 hour increments.  Right now we can take from one hour to one week.  My memory says 4 or 8 hour increments are the "norm" but would love some feedback.  I don't see the 8 hour rule working very well.  Thanks in advance for the input.

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