Washington state's minimum wage increases by 37 cents to $9.04 an hour starting on New Year's Day.

Compare with other states along the West Coast, like California ($8 per hour) and Oregon ($8.50 per hour), Washington State’s current rate of $8.67 an hour is already the highest state minimum wage in the nation. The federal minimum wage is $7.25.

Yet, a few cities, like San Francisco, have their own laws and have higher rates. San Francisco's current rate of $9.92 will jump to $10.24 on Jan. 1, 2012, making it the first city in the nation to top a $10 minimum wage.

Washington is among a handful of states where the minimum wage will increase Sunday.

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 more than 4 percent. The yearly recalculation is required by Initiative 688, which was approved by Washington voters in 1998.