The best thing you can do is to document the behavior now with your HR representative. If it continues, there will be documentation, which will be very helpful in this situation ending favorably for you if it does indeed continue or get worse.

Start looking for another job ASAP.

Such a creeper ! It he try's anything report him.

File sexual harassment then quit

Well how'd he smell?

You should report it before your manager sends you a dick pic. Trust me, I've experienced the horror and eventually it just might come to that. Spare yourself.

Unless you quit YDI

Firstly, take a step back. This is actually very serious and you shouldn't rush to quit or rush to subject yourself to doing your job with this guy. See what options you have at the table. I'm assuming for some reason you can't get human resources on this and have to put up with it, in which case try to do your job with as little contact from him as possible. If he tries to make another odd move be on guard and LAY DOWN BOUNDARIES. Do NOT "freak out" like some people recommend. Remain professional and say that you're not comfortable being so closed to other people. To get it through their head as best as possible, do not make it about him personally but about everyone (as it should be), and be strict about it. That doesn't mean screech it and cause a scene, but don't smile and act like a friend educating another friend. Else it may come off as soft. If he says anything about you like "don't be such a prude it's just a hug", "i'm just kidding don't be such a bitch" or anything like that, clearly state you're a prude/bitch. Prude, sensitive, bitch, whatever he wants to call it. Own it. Make absolutely clear that yes, you are a bitch, and yes, that means the contact is ABSOLUTELY off limits. Obviously you're on the right side and he's on the wrong, but if it helps the "no touching" rule get through the guy's head, all the better. Lastly do look into human resources, regional managers, and other higher authorities. Don't talk behind his back with other co-workers, other managers, etc. as that can get messy.

I would pass it off for now, but if he keeps it up, definitely report it to someone higher up.

Probably the type of guy who smells panties at a laundrymat!!!