escalator clause


es·​ca·​la·​tor clause
: 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
: 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.” Legal Dictionary, Merriam-Webster, Accessed 28 Mar. 2023.

Love words? Need even more definitions?

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

Challenging Standardized Test Words, Vol. 2

  • a pencil broken in half on top of a test answer sheet
  • The business’s new computer system proved not to be a panacea.
True or False

Test your knowledge - and maybe learn something along the way.

Solve today's spelling word game by finding as many words as you can with using just 7 letters. Longer words score more points.

Can you make 12 words with 7 letters?