The state and federal government impose minimum wage laws. I doubt the city has the authority to do so. If the "living wage" they have demanded isn't applied to ALL businesses in the city limits, then you have a bill of attainder. They are punishing an identified group by an act of legislation without due process of law. You also have an "equal protection" issue if the law doesn't apply equally to all persons in the jurisdiction.
Paying fees and taxes to the government doesn't constitute a "financial relationship". Financial relationships are contractual business activities between the business and government for goods and services.
Many large businesses that employ a good number of people get tax breaks etc.
Thanks for clearing that up for me. I live and learn.
Dig around a little regarding Santa Monica's experience with the 'living wage'. They tried to include hotel employees too. I don't recall the outcome of the litigation, but it should be precidential for the soon-to-come L.A. case.