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escalator clause
(redirected from escalator clauses)

   Also found in: Dictionary/thesaurus, Legal, Wikipedia 0.01 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.

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.



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25 percent and escalator clauses to cover inflation.
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.
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.
 
 
 
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