Can working without authorization hurt a i130 and i485 petition?

Of course, the petition must be completed truthfully and accurately. More information is needed, however, in order to provide a legal analysis of whether your husband's visa violation (employment without authorization) will stand in the way of eligibility to adjust status to become a Lawful Permanent Resident (to get a "Green Card"). Generally such a violation will be immaterial in a marriage-based case in the Immediate Relative category, but could render your husband ineligible to adjust status in the Second Preference category. This is just one of the details in the application process that can be significantly more complex than it might appear. There really is no substitute for you and your husband to consult with an immigration attorney who, after learning all of the relevant information, could advise about eligibilities, options and strategies to attain your goals, and who then could offer legal representation in the often complex application process.