Jarrett, in town for the start of the team's offseason conditioning program, was arrested early Tuesday and charged with driving while impaired.
Jarrett was pulled over in the Charlotte suburb of Mint Hill at 3 a.m., said police spokesman Lt. Sergio Carrera. An officer spotted Jarrett's car cross the center line and run a red light, Carrera said. Jarrett later failed field sobriety tests before he was given a breath test.
"The officer then formed the opinion that Mr. Jarrett was impaired by alcohol," Carrera said.
Jarrett was taken to Mecklenburg County jail and later released on a $1,000 bond. His first court date was set for Wednesday.
Carrera declined to give the results of the blood-alcohol test. A court spokesman said they had not received those documents.
If convicted, Jarrett could face disciplinary action under the league's personal conduct policy.
"We talked to Dwayne today and he and all our players understand that these types of situations are unacceptable," Panthers general manager Marty Hurney said. "He certainly knows how we feel."
Jarrett's agent, Darin Morgan, declined comment.
The Panthers selected the former Southern California star in the second-round of last year's draft. Three days later, the Panthers released veteran Keyshawn Johnson, believing the 6-foot-4 Jarrett would replace him as the No. 2 receiver opposite the smaller and speedy Steve Smith.
But Jarrett struggled to learn the playbook and adapt to the NFL game. He was beaten out for a starting job and even had trouble getting on the field on game days.
Jarrett was on the inactive list for six of the first eight games. He played more later in the season but finished with only six catches for 73 yards and no touchdowns.
The Panthers signed veteran receiver Muhsin Muhammad last month, and Hurney indicated Muhammad could serve as mentor to the 21-year-old Jarrett, who holds the Pac-10 career record with 41 touchdown catches.