Law Dictionary

escalator clause

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

Legal Definition of escalator clause

  1. 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. 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


Seen and Heard

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

Love words? Need even more definitions?

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

WORD OF THE DAY

not embarrassed or apologetic

Get Word of the Day daily email!

Love words? Need even more definitions?

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