From your question we’re going to assume that you’re a female and that is where your problems lies.
Currently at the K.I.P.P. we have a no touching rule in affect, whether you agree with it or not unfortunately it is a rule. So it’s actually not that Mr. Dixon believes that your friend is attempting to touch you inappropriately but rather that he doesn’t want him touching you at all. Whether he’s gay or not has nothing to do with the issue.
If you recall there have many incidents where heterosexual (“straight”) males have touched males perhaps in passing or greeting. Though it was completely innocent they have still been reprimanded by the establishment; and don’t think that it’s only with guys, girls receive the same treatment. Even I have a story of a female friend and I simply walking around with our arms linked. Scolded we were; and told to stop touching immediately.
But then who knows maybe he’s just jealous your friend has female friends and he doesn’t :D