It depends on what 'free play' they are talking about, if you can grab the rear wheel, and apply force 90 degrees to the plane of rotation, and there is play, then there is a problem.
Just reread your post, and you have a mono style bike, so I'm not sure how the bearings are installed, as the dual shock bikes have an axle, and tightening it up can reduce play.
If the free play, is with moving the wheel back and forth in it's normal plane of rotation, that is play in the drive train, worn final drive splines, play on the gears in the final drive, etc., and that is not much of a concern, as long as the drive splines are in decent condition.
Try to find out which they may be talking about.