Who decides? The state or the individual?

This is a continuation of another discussion, but I'd like to start by addressing the basic philosophical point first. To do so, let's examine this situation:

Worker is looking for a job and Boss is looking to hire someone. We can assume that Worker, all things considered, would prefer to work for the highest wage and the fewest hours, whereas Boss, all things considered, would prefer to hire someone for the lowest wage and the most hours. Now, suppose also that the state is considering a law that both sets the minimum wage at which an employee may be paid as well as the maximum hours that an employee may work. Without the law in place, however, we can assume that Boss and Worker might negotiate a deal which would fall short of the law's minimum wage limit or exceed the law's maximum hour limit.

In this situation, who should make the decision regarding Worker's wages and hours: Worker and Boss, negotiating between themselves, or the state, through its minimum wage/maximum hour legislation?