I can schedule to go for i-485 interview with my wife who is a citizen, but I have been working without employment authorization. Is that going to be a problem?
Yes, that is not a problem. If you are applying for adjustment of status on the basis of a marriage to a US citizen, any unauthorized stay in the US or any unauthorized employment is forgiven so it is safe to disclose it at the interview.
Shouldn't be a problem as long as you honestly disclosed your employment history on the G-325A Biographical form. If not honestly disclosed contact and attorney, amend the form and bring this to the interview with actual employment dates.
In general, a person who is married to a U.S. Citizen, who entered the U.S. lawfully and with inspection may succeed in adjusting status to become a Lawful Permanent Resident (to get a "Green Card") notwithstanding that he overstayed his visa and notwithstanding that he became employed without authorization. Additionally, in a marriage-based adjustment of status case, if a beneficiary fails to attend the scheduled USCIS interview, he may expect his case to be denied.
If you qualify for an adjustment of status based on marriage to US Citizen, and there are no other issues of entering the country illegally or possibly being subject to a 3/10 yr ban, then the issue of unauthorized employment should not be a concern based on your marriage to US Citizen. Unauthorized employment and being currently out of status is forgiven based on marriage to US Citizen, but you must confirm that you qualify for adjustment of status, that will depend on your manner of entry into USA.
Your attorney should advise you as this issue is possibly problematic. Under section 245(a), the unauthorized employment is forgiven. The problem is that if you failed to disclose this employment on the G-325 or any other forms, you have made a misrepresentation by omission. You should "timely recant" at the interview and ask the officer for permission to correct the forms.
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