Okay, I'm a woman, wasn't there, didn't see it except for the picture. Only Minnie and the guy know what really happened but here's my take on it.
I agree with Feral Peg and Eyeore's Butterfly and have no doubt as to the amount of crap the CM's (especially characters) have to put up with. And I also believe that the CM really did feel that she was touched inapppropriately.
But I also believe KinPA that her FIL didn't intentionally do anything wrong when that happened. I know lots of guys, who when displaying affection (for lack of a better word) toward other guys, will put their arm around the back and lay their hand on the chest. Do you know what I mean? Now, they DON'T go around hugging girls that way (of course) but I also have been to WDW enough times to have seen my kids (even myself) get totally wrapped up in the moment and a character and forget that there's an ACTUAL person underneath the costume. So, in my mind anyway, it's very possible that the guy wasn't even thinking about a person (let alone a female) being under that costume. He was just thinking it's Minnie Mouse and he showing affection the same way he would to a buddy.
Perception is reality and what one person thought was innocent could very well be taken as not innocent by someone else. That's why in almost every other workplace, any kind of touching is strictly prohibited. But you can't do that as Disney.....with beloved characters. Maybe someday there will be a rule that guests can't have physical interaction with characters. Until then, this kind of stuff is always going to happen. Some innocent, some with bad intentions.
That's JMHO. I feel bad for the CM and I also feel bad for the guy. KinPA - Welcome to the DIS. I appreciate your post and I feel bad for your FIL. If it was truly unintentional (and it seems like it was to me), it's definately a hard lesson learned.