Apart from union dates (which frankly don't pay that well), what constitutes a living wage? It would have to be based on the place you live; a "living wage" in Boise would be useless in L.A. Also, regulating wages then means that they're taxable, which reduces the net. You'd probably end up with the same $100 either way.I might argue that its not subjective...that it MUST be a living wage...not minimum 'non-livable' or its not sustainable.
Also, forcing a small bar to pay the same wage as a hotel bar would just result in them cancelling all bands, which results in less work and less pay to go around. It's a slippery slope, and not likely to happen.
The way to try and combat the inequity is with the musician's union, and the inevitable strikes. Except that their 'hold' on venues has been decimated over the last 50 years and now exists pretty much for orchestral and media work. They just don't have influence anymore when it comes to small gigs or most casuals.
So, many musicians have to work a day job, and there's no shame in that. I never had a problem working a day job to allow me to play music, buy new heads and sticks, etc. I liked playing drums... I also liked to eat.