The dolls, in pink and brown, carried a "pro-life" message and information on fetal growth, said a teacher.
The employee, who gave out the dolls, has also been suspended.
However, it is not yet known if principal Sheila Tillett Holas knew that students were being given these dolls.
"It is hard to imagine that we would have an employee who believes it would be appropriate to share plastic fetus dolls with students in one of our schools," the New York Daily News quoted School Board Chairman Stephen Tonelson, as telling the Virginian-Pilot.
Board member Kirk Houston Sr., said: "To be quite honest, that is so incredible to me, that a staff member would do something so ... entirely inappropriate and unacceptable."
The school is looking into the matter.