escalator clause

noun
es·​ca·​la·​tor clause | \ ˈes-kə-ˌlā-tər- \

Legal Definition of escalator clause

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

Learn More about escalator clause

Cite this Entry

“Escalator clause.” Merriam-Webster.com Legal Dictionary, Merriam-Webster, https://www.merriam-webster.com/legal/escalator%20clause. Accessed 23 Oct. 2020.

Comments on escalator clause

What made you want to look up escalator clause? Please tell us where you read or heard it (including the quote, if possible).

WORD OF THE DAY

Test Your Vocabulary

Farm Idioms Quiz

  • cow coming home
  • What does 'poke' refer to in the expression 'pig in a poke'?
Spell It

Can you spell these 10 commonly misspelled words?

TAKE THE QUIZ
Dictionary Devil

Test Your Knowledge - and learn some interesting things along the way.

TAKE THE QUIZ
Love words? Need even more definitions?

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