The Kansas City Chiefs have released an official statement on the Larry Johnson situation.  Per the Mothership:

The Kansas City Chiefs and the National Football League are continuing to investigate the alleged comments made by Larry Johnson. Until that review is complete, the Chiefs have instructed Larry to refrain from practicing with the Chiefs or participating in other team activities. A decision regarding Larry’s status will be made once the investigation has concluded.

Surprised?  I'm not.  The Chiefs are buying themselves some time as they determine what all their options are.  Yesterday, head coach Todd Haley said the Chiefs are "looking at a couple situations" in regards to the LJ incident.

The team (or the NFL) can suspend him without pay for his conduct.  The league acts as the judge, jury and executioner in situations like this so there's not much LJ or the NFLPA could do if they did decide to go this route.

LJ has also released an official apology which can be read here.