Yes! If the free market results in employers offering shitty choices that take advantage of workers with limited options, the government should step in and attempt to correct the power-imbalance that puts the workers at life- and liberty-threatening disadvantages.
Extrapolating from your logic, indentured servitude would still be allowed to exist.
Banning a form of work where workers owns the means of production doesn't seem to be in the workers interest. I'd rather they regulate it in a better way, for example rewrite union laws to make it possible for gig workers to unionize.
Uber drivers do not own the means of production, as ruled by the recent California courts, because they do not own the capital of their employers, which is the IP of Uber. This is why socialists are developing and operating open-source and decentralized alternatives to Uber in many countries, so that they will indeed own the means of production.
That said, I agree that employment laws need a rewrite for these situations, but we won't get the needed reform to get the gig-worker system to work under either Biden or Trump, so not for at least 6 years.
Extrapolating from your logic, indentured servitude would still be allowed to exist.