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

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ERTA

escalator clause

escape

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Cite this Entry

“Escalator clause.” Merriam-Webster.com Legal Dictionary, Merriam-Webster, https://www.merriam-webster.com/legal/escalator%20clause. Accessed 5 Dec. 2021.

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