Glossary
Auto-renewal
A term that continues for another period unless a party gives notice to stop it, sometimes taking a price increase with it.
Auto-renewal extends the term. It does not, by itself, raise the price. The price moves only if a sentence says the renewal fee is different. Those sentences are often in the same section as the non-renewal notice, which is why they get missed: the conversation is about whether to keep the customer, not about the percent in the next line.
The non-renewal deadline and the price-increase deadline can differ. A contract can require 90 days to stop the renewal and 30 days to notice the increase, or the reverse. Calendar both.
In seasonal work, the renewal date is often in summer for a winter service, or in winter for a summer service. By the time the work is visible, the renewal has already happened and the price is whatever was loaded then.
Silence that renews the term should be treated as a deliberate event. Someone should own the date. The billing system will otherwise renew the old price, which is a third outcome the clause did not offer: same term, stale fee.
Related terms
See it used in a worked example · CPI calculator · Request an audit
Sources and limits
Index levels from the U.S. Bureau of Labor Statistics Consumer Price Index, not seasonally adjusted, retrieved through the BLS Public Data API on November 1, 2026. Values are index points, not the headline 12-month percent.
Statewide rates reflect U.S. Department of Labor state minimum-wage postings as updated January 1, 2026, the U.S. Department of State Diplomatic Note on 2026 increases, and, for the prior-year comparison and named local rates, the National Employment Law Project compilation published in November 2025. Confirm the rate that applies to the workplace before using it in a bill.
The contracts in these worksheets are fictional. The prices are chosen so the arithmetic is easy to check. They are not a price survey and they are not client results.
RateClause is not a law firm. Nothing on this page is legal advice. Your clause controls, including whether a past period can be rebilled at all.
Primary postings: BLS Consumer Price Index, U.S. Department of Labor, state minimum wages, U.S. Department of State notice of 2026 minimum-wage increases.