Escalator Clause

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Related to Escalator Clause: Graduated lease, index lease

Escalator Clause

A stipulation contained in a union contract stating that wages will be raised or lowered, based upon an external standard such as the cost of living 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 business contracts to raise prices if the individual providing 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 regulations. When this type of provision is in a lease, a landlord has the power to collect the maximum amount of rent allowed under rent regulations that are in effect at the time of the lease. The escalator clause provides that if the rent regulations are altered during the time of the lease, the tenant must pay the new rental fee computed pursuant to the revised regulations.

escalator clause


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This time, the federal government and the Band had their own lawyers involved, and they agreed on a draft for the lease and an escalator clause in the lease which said that when the major review came up after the first 20 year period that the annual rent was to be based on "6 percent of the current land value".
The percentage of union workers with escalator clauses also depends on regulatory and economic conditions in the industry.
Stop Clause: A provision in a lease whereby real estate tax increases imposed on the lessor are passed along to the lessee as additional rent; also referred to as an Escalator clause.
There are escalator clauses based on playing time and performance that could eventually push the deal beyond $10 million.
2 percent increase over five years, with escalator clauses to deal with inflation - the same deal given to Department of Water and Power workers last year.
2 percent over five years, with escalator clauses for inflation.
The contracts reduce the cost per ton from $65 to a combined cost of $50 and also contain lower inflationary escalator clauses than existing contracts, which will increase the seven-year savings to more than $200 million, he said.
25 percent package that contained escalator clauses that could boost the pay of workers by up to 28 percent depending on the national level of inflation.
Boeing, they said, had benefited from price escalator clauses in its sales agreements that boosted 2000 operating revenues in a way that was not likely to be repeated in 2001
These four year lease agreements with annual escalator clauses will in turn provide true multi-fuel power production capabilities to the end user for the first time.
The second year of the contract includes price escalator clauses which could substantially increase the value of the contract when compared to the first year.