Instituting a living wage would in no way prevent you from working extra and being paid extra for that work. I'm inclined to believe you haven't actually researched what a living wage is or would entail to enact, because the inaccuracy of the claim you're making is egregious.
(I don't endorse that point of view, just trying to make sense of their claim.)
Basically, when setting a minimum wage, you end up picking between two groups of labor: those who work for some extra money (think high schoolers and retirees who would like some extra spending money and don't mind doing menial tasks that may not generate much value to earn in) and those who work to live (think unskilled laborers who do laborious work and feel they are insufficiently compensated for it). A lower wage favors the former group because they are able to offer the services for less (and the quantity of labor demanded will increase if the price goes down) while a higher wage favors the latter because they can demand more money.
I hadn't heard this decision point framed so clearly in terms of the two kinds of labor each side ends up favoring, that's a great example.
It would be nice if it was possible to have a sensible minimum wage for, say, employing someone over 5 hours a week, but have mechanisms that make it legal for someone to do very short term work at wages nobody should ever live on. There's plenty of people underemployed at 15, 20 hours a week, that would love to supplement that with a bit of extra work, even if it was under minimum wage. In fact, in some cultures this happens all the time.
That work would also get done if we had a citizen income that matches that living wage, and we got rid of the minimum wage altogether.
Now, whether the world would be in a better state by leaving work not done but guaranteeing a living wage or by maximizing work done is a matter for debate: Looking at minimum wage laws alone is not enough to compare policy outcomes. Still, the grandparent was making a defensible argument, whether you think he is wrong (and he might be) or not.
This is a real issue (and it applies to regular old minimum wages even they aren't living wages); its among the arguments for why Basic Income would be a better minimum-quality-of-life support than minimum wage guarantees for the working plus welfare for the nonworking, since it doesn't stop any mutually-beneficial work from being done merely because the market clearing price is below an artificial threshold.
OTOH, even people who recognize that the restriction on some work that it implies is a problem think its a cost worth paying for a living wage guarantee given that its harder to get support for (and, arguably, beyond the level of the economy now to support) a Basic Income at a sufficient level in the near term.
I live in the Seattle area where $15/hr is the minimum wage now for the city proper. Sure certain businesses still have another year or two to implement it, and other businesses another 5 or so years, but I'm looking forward to seeing the results over time and how well they match various parties' predictions when the law was passed.