Shelby County school officials say elementary school employee Robert R. Church has been removed from the school during the investigation.
A video shows a 7-year-old boy being dragged by his feet from a school bus, allegedly by Church.
"Get your hands off me. Get your hands off me," the student is heard yelling on video.
The incident allegedly happened on April 12, but the child's parents claim they didn't find out about it until more than 24 hours later when another parent showed them the video, according to WZVN.
"They said he had bruises and a concussion. Because of the way he was dragged, he hit his head," the child's mother Kimberly Hardin said. "I feel bad. I didn't believe my child."
The incident occurred after the boy was involved in a fight with another student and the teacher intervened.