Clauses found in labor agreements that periodically adjust compensation rates upward to help employees maintain their purchasing power are known as:
A) maintenance clauses.
B) escalator clauses.
C) roll-up clauses.
D) guarantee clauses.

Question

Quizplus · Accepted Answer

The clauses described in the question are known as escalator clauses. These clauses are included in labor agreements to adjust compensation rates periodically and help employees maintain their purchasing power. Option A, maintenance clauses, is an incorrect term for this type of clause. Option C, roll-up clauses, is not a commonly used term and does not accurately describe the type of clause in question. Option D, guarantee clauses, is also an incorrect term and does not accurately describe the type of clause in question.

Clauses Found in Labor Agreements That Periodically Adjust Compensation Rates