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Ai Training Company Terminating My Account And Withholding Pay

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Location: Indiana, USA

I was working as an independent contractor on an AI training platform. My account was recently terminated, and the company is withholding payment for work I completed shortly before termination (approximately $400–$500).

I’ve reviewed the Terms of Service and can’t identify a clear violation that would make the completed work ineligible for payment, but the company has stated their decision is final.

The TOS includes a mandatory arbitration clause and states that the company will pay arbitration fees for claims under $75,000 unless the claim is deemed “frivolous.” I’m trying to understand how that language is typically interpreted.

My questions are:

  • Does the relatively small dollar amount ($400–$500) increase the risk that an arbitration claim would be considered “frivolous”?
  • In practice, would a claim seeking unpaid compensation for completed work generally qualify as non-frivolous?
  • Is arbitration a realistic avenue in disputes like this, or are there alternative steps I should consider first?

I’m not looking to challenge the termination itself, only to understand the process and likelihood of recovering payment for work already completed.

Thanks for any insight.

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