I heard squealing from my rear brakes awhile back and so I took them off and cleaned them, lubed them as well. Once I put them back on and gave it a test ride I still had the squeal. When I went back to check again, they had this vertical movement. I immediately started freaking out cause, I mean, new bike. But this thread has made me feel a bit better although the squeal is irritating.

 

Floating vertical movement is normal. The squeal is an issue.
Thickness of rear pads is the first check. Bet you already did that.
Debris on or near the caliper is next. You did clean them, so...
Possibly one of the pad spring clips is loose and rubbing the disc.

Brakes ain't rocket surgery.

 

While I agree they're not rocket science, I'm what you would call, dumb. But anyways, when I had them off I couldn't get the pads loose cause I couldn't find the clip to let the pins loose to take the pads off. I'm gonna dig into it again tomorrow. Unfortunately the big is too new and too cheap for there to be a lot of info or even pics of them online. The clips didn't appear to have moved or anything when I had the caliper off last time. 1 more piece of info, once I clean the brakes they will not squeak for a few stops and then start up again.

 

I have a 08 heritage with the same thing. Thought it was strange

 

09 Street Bob. Same movement here. Stops fine.

 

'14 breakout here , rear caliper moves up and down as well , stops fine , no missing parts. Did notice, when replacing pads , the two circular cups that slide inside the pistons had some irregular wearing at the base contact point within the piston , cleaned it out and gently dremmeled the slight bur off of the cups and replaced , all is well.

 

update to my OP
have noticed the rear brake dragging and getting hot rotor quickly.
On bike jack , after cooled down , spin the wheel forward and seems not bad but noticebly dragging.
Spin the wheel backwards and a much more noticeable drag to the point whereby the caliper moves back ( as they do ) slightly.
Wheel is aligned nicely so this is what I did.
Removed caliper , removed pads , cleaned all 3 fasteners well and applied a tad of anti seize to contact portion, removed spring clip in caliper and gently dremeled all build up from it , gently removed all build up from within caliper contact points , cleaned small clip within caliper mount without removing it and gently sanded gloss off of pads.
Blew everything out with compressed air and re-installed.
So far so good ( knock on wood )
I suppose the tiniest bit of buildup within the contact points of such a small braking system due to heat and wear can really affect its performance.
Cheers