Vermont, one of several states that tie their minimum wage to inflation, is set to raise its minimum hourly rate to $8.60, up from $8.46, on Jan. 1.

The inflation rate is calculated for the 12-month period ending Aug. 31 of each year and takes effect at the dawn of the new year. This year's increase is less than 2 percentage points, based upon results of the Consumer Price Index (CPI).

For tipped employees, the state minimum wage rises from $4.10 to $.17.