Definition of "escalator clause" [escalator clause]

• A provision in a contract stipulating an increase or a decrease, as in wages, benefits, or prices, under certain conditions, such as changes in the cost of living. (noun)

American Heritage(R) Dictionary of the English Language, Fifth Edition. Copyright (c) 2011 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.