The NBA slapped league-scoring leader Harden with a one-game ban for his actions during Saturday's contest.
The incident took place in the third quarter of Houston's 105-103 overtime win. Officials initially assessed Harden with a flagrant foul, but the league upgraded it to a flagrant No. 2 foul after reviewing the tape of the altercation.
James was not seriously injured and remained in the game.
Harden will be forced to sit out when the Rockets visit Eastern Conference leader Atlanta on Tuesday.
Harden is averaging a league high 27.1 points per game this season.