Yes, it is quite possible that, in absence of any legal restriction on minimum wages, some employees will pay very low wages to their employees. But I don't believe that employees will ever be able to reduce the wages to as low as 1 penny per hour. There are several reasons why the wages cannot fall to such low levels.
Most important, the employees will not be able to get any workers willing to work below a certain minimum wage determined by market forces. Also, when the wages are very low the quality of workers they get will be low.
Also, enlightened employers and managers realize that it is more profitable for them to pay their employees well as it enables then to motivate workers to give higher productivity, that more than compensates for higher wages.
Even if there is no legal provision for minimum wages, collective bargaining through trade unions enable employers to negotiate for better wages.
In spite of all these things, it is quite certain that in absence of legal provisions for minimum wages some people will find their earnings reduced significantly.
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