The team, in a statement Friday, did not characterize its action as a suspension, and indicated Taylor agreed to the measure.
"As an organization, we understand and appreciate the seriousness of this matter, and will assist the NBA and law enforcement in any way we can until this comes to an acceptable resolution," the Hornets said.
"We have spoken with Jeffery and his representatives and they fully understand our position."
Taylor was arrested and charged on Thursday in East Lansing, Michigan, just the latest unsavory incident to tarnish the reputation of US sports.
The 25-year-old was arraigned and has been formally charged with one count of domestic assault, one count of assault and one count of malicious destruction of property, a police statement said.
Authorities did not outline the circumstances of the case, saying only that police were called after a report of domestic assault at an East Lansing hotel at around 1:00 am on Thursday.
Taylor, a 25-year-old measuring 201 centimetres, was born in Norrköping in eastern Sweden. He is about to enter his third season in the NBA. He holds dual Swedish and American citizenship
He missed most of last season after rupturing his right Achilles tendon in December.
His arrest came just days after NBA Commissioner Adam Silver said the league was reviewing its policies on domestic violence in light of the public relations crisis the NFL is facing over its handling of several such cases involving high-profile players.
That included the NFL's clumsy handling of Ravens running back Ray Rice, who knocked his future wife unconscious in a casino elevator in February.
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