Fr Larry McGovern, who leads the Church of the Presentation in Stockton, has been suspended after a man maintaining the church's pool claimed the priest sent him the images.
According to his lawyer, Vince Finaldi, he then confronted Fr McGovern and asked him whether he was maintaining his vow of celibacy as a priest.
Vince Finaldi claims Fr McGovern replied by saying celibacy simply meant he was not married.
The lawyer told FOX40: "Someone's who's engaging in that type of conduct has very, very serious credibility issues and issues with judgement."
The pool maintenance worker was subsequently fired from his job when he approached the police about the alleged images, prompting him to sue the priest for sexual harassment.
The Diocese of Stockton said: "Today the Diocese of Stockton learned for the first time of employment related allegations against Monsignor Lawrence McGovern, the Pastor of Presentation Parish in Stockton.
"In accordance with the Canon Law of the Church, Bishop Stephen Blaire has placed Monsignor McGovern on administrative leave pending a full and complete investigation."
