Washington state's minimum wage will increase by 15 cents to $9.47 an hour starting on New Year's Day.
While the state's current rate of $9.32 an hour is already the highest state minimum wage in the nation, a few cities have their own laws and have higher rates, like San Francisco, whose current rate is $10.74. The Seattle City Council voted in June to gradually raise the minimum wage in Washington's largest city to $15 an hour. The federal minimum wage is $7.25.
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Washington's minimum wage is adjusted each year for inflation as measured by the Consumer Price Index for the past 12 months, which is up nearly 1.6 percent. The yearly recalculation is required by Initiative 688, which was approved by Washington voters in 1998. Oregon has the second highest state rate, and its minimum wage will increase to $9.25 next year.