Nothing is perfect, always open to exploitation.
gov should make sure monopolys don't occur and there is a minimum wage etc. but it should primarily be a free market
Create minimum wage, businesses will lower work hours to avoid spending too much on their employees. If they doesn't work they lay people off and replace them with machines. If that doesn't work, then they can outsource their labor to a nation with little or no pay, terrible working conditions, and little to no safety regulations.
Create equal wages, people will leave the country to find places for better work. The Soviet Union experienced this problem when Doctors and scientists were tired of earning the same pay as a janitor and realized they could make more money if they defected to the west.