The Washington State Department of Labor & Industries says the state minimum wage will rise 2.8% on January 1st, increasing to $17.13 an hour.

By law, the rate is recalculated each year using the Consumer Price Index for Urban Wage Earners and Clerical Workers, measuring inflation from August to August.

Washington already holds the nation’s highest minimum wage at $16.66, far above the federal rate of $7.25, which hasn’t changed since 2009.