An email was sent to administrators at the university confirming that McCarty would be placed on leave.
"In the last two weeks, the University received a troubling report about Coach McCarty’s interactions with a member of the campus community. We have placed Coach McCarty on leave while that incident is being investigated," reads the email from UE President Chris Pietruszkiewicz.
UE did not publicly specify the nature of the allegations.
McCarty's team had one of the biggest upsets of the season when he unseated no. 1 Kentucky earlier this season.
Bennie Seltzer has been named interim coach.