OLYMPIA, Wash. — Washington state's minimum wage will increase to $12 an hour in the new year.

The increase — up from this year's $11.50 an hour — is part of 2016's Initiative 1433, and will ultimately raise the state's rate to $13.50 an hour by 2020.

Paid sick leave under the law started this past January, allowing employees to earn at least one hour of paid sick leave for every 40 hours worked.

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The state's minimum wage applies to workers in both agriculture and non-agricultural jobs, although 14- and 15-year-olds may be paid 85% of the minimum wage, according to the Department of Labor and Industries, which announced the upcoming increase Thursday.

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For employers in cities that already have higher minimum wages, including Seattle, the local minimum wage rate will apply as long as it is higher than the state minimum.