To make this work, if you've been underpaid as a non-US person, you can file a complaint, and even if you're illegal in the US, that would get you a U visa, which allows up to four years residency. Winning the complaint would get the employee double pay retroactively plus a green card. That would encourage employees to file complaints, and would encourage employers to be much more careful about whom they hire.
California could try this on its own, and should.