The Board of Immigration Appeals (BIA) determined on April 30, 2010 in Matter of ALANIA, 25 I&N Dec. 231 (BIA 2010) that a foreign national who is eligible to adjust status, in other words receive a greencard, through Section 245(i) of the Immigration and Nationality Act, cannot be denied due to unauthorized employment.
Section 245(i) was a provision of the law that was enacted in 1994 and then renewed in December 2000 by then President Bill Clinton. Section 245(i) allowed for those who were unlawfully present in the United States to legalize their status if they had a qualifying family member or employer who would sponsor/petition for them, were willing to pay the $1000 penalty on form I-485A and if they met certain other requirements.
The full case is below: