Not only do I not agree with this consequence in general and definitely knowing the kids have to sit out all recess, but I really don't like the idea of receiving the punishment the next day either, especially for a child like your DS that is working on behaviors. He could be having a really good day, but because of something that happened the day prior he has to sit during recess. I think this is going to set him up to fail.

I agree that you need to talk to someone and nicely and calmly explain the reasons why this may not be helpful to what they are trying to accomplish with the behavior chart.