Sam McNair, 17, was suspended after school officials learned he violated the school system's rules on sexual harassment.
Video of the hug was captured on a surveillance camera. It shows McNair walk into a room, put his arm around the back and front of a teacher, and tuck his head behind her neck.
According to a discipline report, the teacher alleged McNair's cheeks and lips touched the back of her neck and cheek.
McNair denied he kissed his teacher or sexually harassed her.
McNair said he regularly hugs his teachers and has never been disciplined for it in the past.