ESCALATOR CLAUSE
A stipulation contained in a union contract stat-
ing that wages will be raised or lowered, based
upon an external standard such as the cost of liv-
ing index. A term, ordinarily in a contract or lease,
that provides for an increase in the money to be
paid under certain conditions.
Escalator clauses frequently appear in busi-
ness contracts to raise prices if the individual pro-
viding a particular service or type of merchandise
is forced to pay more for labor or materials.
Such clauses are also often part of contracts
or leases executed subject to price-control regu-
