escalator clause

noun

es·​ca·​la·​tor clause
ˈes-kə-ˌlā-tər-
1
: a clause in a contract that provides for an increase in the amount of the payments made under the contract to reflect an increase in costs or the raising of a government-imposed cap on costs
2
: a clause in an employment contract that provides for an increase in wages to reflect a rise in the cost of living but prohibits a decrease to reflect a drop in the cost of living

Dictionary Entries Near escalator clause

Cite this Entry

“Escalator clause.” Merriam-Webster.com Legal Dictionary, Merriam-Webster, https://www.merriam-webster.com/legal/escalator%20clause. Accessed 16 Jun. 2024.

Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!