The penalty is the result of an altercation Hurley had with a taxi driver in September 2009 that saw him charged with assault.
The 19-year-old defender will face court on March 5th.
Essendon CEO Ian Robson said the club was liasing closely with the AFL, as Hurley and his lawyer work their way through the legal issues involved.
"Michael made a serious mistake and he is extremely remorseful for his actions," Robson told the Essendon website.
"He accepts that the club has imposed this sanction, and will take further action, and he will continue to fully co-operate with police and the courts."
Robson said the sanction was not an indication of Hurley's guilt or innocence on the charges, and indicated the club sanctions would stand regardless of the court outcome.
Hurley was taken at No.5 in the 2008 NAB AFL National Draft. He played 10 games in his debut season mainly as a defender, but also shone when sent forward, bagging four goals as the Bombers defeated the Hawks in round 22 to secure their finals spot.
Michael Hurley is a $273,300 defender/forward in this years Toyota AFL Dream Team
