Izzo will miss Saturday's home game against Prairie View A&M.
The school released a statement Friday that said an "individual associated with a prospect" was hired during the annual Michigan State basketball camp. The individual was paid $475 for five days work.
Izzo said he accepted the decision but said Michigan State did not violate the intent of the NCAA rule because the school did not attempt to gain an advantage in recruiting.
"I've always placed a high importance on following the rules and pride myself on adhering to high standards of professional conduct and doing things the right way," Izzo said. "This is an isolated and inadvertent secondary violation of a new rules interpretation. I regret that it happened."