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Escalator clause

   Also found in: Dictionary/thesaurus, Legal, Encyclopedia, Wikipedia, Hutchinson 0.10 sec.
Escalator clause
Provision in a contract allowing cost increases to be passed on. In an employment contract, for example an escalator clause may call for wage increases in line with inflation.

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25 percent raises each year for five years, and an escalator clause to account for inflation.
AFBF convention delegates voted that future farm supports should contain "an energy escalator clause because of the high prices of fuel and fertilizer.
Both sides seemed to agree that the Eighth Amendment was written with what Yale Law Professor Akhil Reed Amar calls a built-in escalator clause.
 
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