The players' association filed the grievance after his contract was terminated two years ago, saying the decision was without just cause.
Arbitrator Shyam Das found that the Astros were within their rights to terminate Chacon's contract without further compensation after he assaulted general manager Ed Wade on June 25, 2008. The team announced the decision Monday.
Chacon had a $2 million salary in 2008 and the termination of the contract kept him from receiving $983,607.
He was suspended from the team after shoving Wade to the floor before a game. Wade said he had asked Chacon to come into former manager Cecil Cooper's office for a meeting and he refused, leading to the incident.