Fallon, who coached the Mt Albert Grammar School first XI, was suspended after referee Alan Marriott complained about his behaviour during Mt Albert's match against Kelston Boys' High School on June 23, the New Zealand Herald reported.
Acting on the report, College Sport chief executive Manoj Daji suspended Fallon until the end of this season.
In the report, Marriott said he was speaking to a Mt Albert player when Fallon called out from the bench saying more time was being spent lecturing players than playing football.
"`10 minutes playing and 20 minutes lecturing ref, get on with the game" was the essence of the comment made," Marriott said.
"I chose to deal with this incident as it followed numerous inappropriate comments he made in the first half from his position above the changing rooms. `The ref's looking to give free kicks against us boys' and `the ref is biased' are two examples I recall'."
Fallon and Mt Albert Grammar have appealed the decision. The board of the Auckland Secondary Schools Heads Association will hear the appeal on Friday.