On July 16, Jackson allegedly "hugged the female employee and lifted her off the ground, causing discomfort and annoyance," the Prosecutor's Office said.
"There was a clear conversation saying she was uncomfortable with the interaction," said Jason Laughlin, a spokesman for the Prosecutor's Office.
Jackson, of West Berlin, faces two counts of harassment and simple assault, which are disorderly persons offenses.
Jackson's attorney, Louis Barbone, could not be reached Friday. Jackson did not return a message left at his home.
In September, the Township Council suspended Jackson after two female employees made allegations against him. At the time, he was also under investigation by the Prosecutor's Office, the council resolution said then.
One of those two employees is the alleged victim in this case, Laughlin said.
The woman notified a police officer, who notified the Prosecutor's Office in the fall, Laughlin said.
He said the charges against Jackson did not involve the allegations made by the second employee.
Jackson's salary was $108,742 for his role as police chief and township emergency management coordinator, according to the township.
Township Mayor Phyllis Magazzu declined to comment.
Contact Darran Simon at 856-779-3829, email@example.com, or follow @darransimon on Twitter.