The Independent Police Review Authority recommended the move to police Superintendent Eddie Johnson.
Johnson has said that the sergeant was in his personal vehicle when he saw a suspicious-looking man, starting a confrontation during which the officer shot the man in the arm. It happened about 5 a.m. Sunday in the Morgan Park neighborhood.
Chicago police spokesman Anthony Guglielmi says the young man is autistic and has schizophrenia. He says the sergeant will be assigned to paid desk duty.
The man was released from a hospital after being treated for his wound. Police say no weapon was recovered from the man who was shot.