It's the natural order of regulated capitalism, the regulations just enforce a floor. The incentive to get as low as possible is still there- companies will push edge cases that aren't regulated until someone notices and builds a floor under that, too.

I should say, it's the natural order of regulated capitalism in the absence of strong unions. If you have unions they can push back against crappy working conditions on their own, with only nominal government backing (ie laws that encourage and legitimize unions).