escalator clause

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Related to escalator clause: Graduated lease, index lease

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.

Escalator Clause

A clause in a contract stating that a certain payment increase will grow each year according to some formula stated in the contract. For example, an employment contract may have an escalator clause allowing for small increases in salary each year. An escalator clause usually exists to protect one party to the contract from inflation.

escalator clause

See escalation clause.

References in periodicals archive ?
Stated differently, even if the pattern of union employment across industries had remained constant, the number of union workers covered by escalator clauses would have declined.
Because the rate of increase in pay and whether or ot a contract contains an escalator clause are simultaneously determined with contract duration in the bargaining process, the estimation treats these two variables as endogenous.
The strategy continues to work, particularly as the sport's key contracts contain escalator clauses which increase the amount paid by sponsors by up to 10% each year.
What it says about the cost of things helps regulate what things cost -- from union contracts, to escalator clauses in child-support settlements, to Social Security checks, to brackets on the personal-income tax, not to mention payouts on bonds known as TIPS (Treasury Inflation-Protected Securities).
The Rangers were the first to hit the ground running through a 20-year deal with Fox Sports Southwest valued at $3 billion that includes equity in the network, escalator clauses and profit participation.
PCA estimates that since 2006, escalator clauses have cost states $1.
Smaller contractors will take the disproportionate hit, because they are less able to absorb these costs and have less bargaining power to insist that escalator clauses be inserted into deal language.
After the last set of fuel increases three years ago, some carriers built in escalator clauses into their contracts, but Switzer says, other reluctant operators do not always pass their costs on to the shippers and pursue the proper compensation because of the competitive nature of the industry.
Unless specifically required to be identified on the Bid Form, Bids containing escalator clauses may be rejected by the College at the College s sole and absolute discretion.
The call to cut fuel duty was echoed by Birmingham Chamber of Commerce, especially to help small companies who don't have fuel escalator clauses
And broadcast and pay TV licenses have long contained escalator clauses that tie films' ancillary value directly to box office grosses.