Santa ordered not to put the red suit back on until a court resolves the charge.
The man, Herbert Jones, 62, was arrested on Saturday and charged with one count of indecent assault and battery on a person over the age of 14, Russ Eonas, a spokesman for the Plymouth County district attorney's office, said on Tuesday.
The prosecutor's office declined to comment on reports that the co-worker wore an elf costume as part of the job.
Jones pleaded not guilty and was released on $1,000 bail. A judge ordered him to stay away from the Hanover Mall, where he had worked, and not to seek work as a mall Santa until the charges are resolved.
Jones is due back in court on December 24, Christmas Eve.
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