The answer is yes. If two people are together, they will have a white circle around their feet. That said, it may be the case that two people live very close or are in the same proximity and the Snapchat Map thinks they are physically together. The one thing you will know for certain is they are within distance of seeing each other if there is a white circle around their feet.
This is what it looks like:
Have you noticed the white circle around people you are with? Is this going to be a huge issue for boyfriends and girlfriends that get jealous? Do you like this feature or should they take it away?