MLS Commissioner Don Garber also directed Clark to attend diversity and sensitivity training.
Garber says "Major League Soccer will not tolerate this type of behavior from its players or staff at any time, under any circumstances."
The 27-year-old previously apologized on Twitter and said he will personally say he's sorry to the ball boy for the March 24 incident.
"I am sorry about what happened during the Seattle match," Clark said. "I have personally apologized to the ball boy, and I want to take this chance to say I'm sorry to everyone that I've offended. I intend to never use those words again in any context. There is no excuse for them. What I said does not properly represent who I am or what I believe. I made a mistake that I truly regret. I accept the punishment that has been handed down by MLS, and I want to learn from this incident and move forward."
Garber says, "I believe that he will learn from this incident."
The Dynamo released a statement which read: "Colin Clark made a regrettable and inexcusable mistake for which he is being disciplined. We accept and support the punishment that has been laid out by MLS and look forward to moving beyond it. We know that this incident is not a true representation of Colin's character or beliefs and that he is remorseful for what happened. He has a strong record of being a community leader and expect that he will use this as a learning and teaching opportunity in the future."
Information from the Associated Press was used in this report