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 ?
Part-time employees, by virtue of their shorter job horizon, are likely to place a lower value on escalator clauses than do full-time employees.
25 percent and escalator clauses to cover inflation.
Michael Printz, the Rent Stabilization Association director of sales and marketing, advises obtaining escalator clauses to keep pace with inflation or cover the cost of business.
An additional 644 mw of firm, higher cost purchased capacity from non-utility generators is scheduled to commence over the next few years, with price escalator clauses included in many of the associated contracts.
2 percent, but contains escalator clauses that could boost salaries by 31 percent.
For CBB, the data center business has provided a growing source of revenue with relatively attractive returns; contracts are typically for 10 to 15 years and contain escalator clauses.
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
Asphalt cost escalator clauses are a price adjustment provision that allow paving contractors to raise their construction price based on a fluctuation in liquid asphalt cost.
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.
PCA estimates that since 2006, escalator clauses have cost states $1.
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.
Some contract assemblers could provide a working number within a few days, but it would come with a list of caveats and unknowns and escalator clauses.