NBA executive vice president of basketball operations Stu Jackson announced the punishment on Friday, a few hours before the Magic-Heat matchup. Williams is eligible to return for Orlando's next game Tuesday at New York.
"I was disappointed that it happened," Magic coach Stan Van Gundy said. "But it happened, so we'll move on."
Williams was ejected with 58 seconds left in the fourth quarter of the Magic's 112-83 victory over the Washington Wizards on Thursday night. He was upset with an offensive foul called against him and, while arguing, tugged on referee Tony Brothers' arm.
Brothers gave Williams both technicals, and players have been warned repeatedly over the last month that excessive arguing will lead to sanctions. Known around the league as the NBA's "respect the game" policy, players and coaches said often during the preseason that they were concerned about too many technicals being levied as a result.
Williams was not particularly demonstrative, but kept pleading his case after Brothers whistled him for the first technical. He then grabbed Brothers' left arm, apparently trying to get the referee's attention.
"You can make a face. You can even have a reaction," NBA Commissioner David Stern said Friday at a business luncheon in Miami. "But don't negotiate all the way up and down the court, because that doesn't put you in a particularly good light. You don't do it in high school. You don't do it in college. Why do you get your MBA in complaining when you come to the NBA?"
Stern said the complaining "sets a very bad example for kids," which is why the league made it a point of emphasis this season.
Chris Duhon is expected to absorb most of Williams' minutes against the Heat.
In addition to the fines for the technicals, missing Friday's game will cost Williams about $16,000 in salary.