Joseph Klein, 66, was arrested and charged with endangering the welfare of a child.
Authorities said the alleged incidents occurred during driving lessons between July 6 and July 22.
Investigators said Klein made sexually explicit and inappropriate comments to male students while conducting lessons on roadways in Hauppauge.
Klein is employed by Elite Driving School, which is subcontracted by Ivy League School Driver Education.
Noah Cooper, owner of Ivy League School Driver Education, said the organization acted immediately after learning about the allegations.
"It was reported to us at Ivy League School that one of the drivers made inappropriate remarks, racial slurs, in front of a bunch of 16-year-old boys," Cooper said. "We immediately called parents, required that Elite never have this driver work with our children again. I personally called CPS and the police to report it. We have a zero-tolerance policy for language and behavior like that and hope he is punished to the fullest extent of the law."
Police are asking anyone with additional information, or who believes they may have been a victim, to contact investigators.
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