Can people employ my wife while waiting for I-130, I-485 & EAD approval?

As a general matter, an applicant for adjustment of status whose I-765 is pending and who doesn't have underlying nonimmigrant status that includes work authorization is NOT authorized to accept employment in the United States. Any employer who hires someone without proper authorization to work would be in violation of I-9 employment verification laws. Accordingly, it would not be in the best interests of an employer to hire someone who isn't work authorized, as it would expose them to potential liability. (There are potential civil and criminal penalties for violating employment verification laws.) On the other hand, you are correct in the sense that if someone with a pending immediate relative adjustment of status case (i.e., US citizen spouse sponsor) works without authorization or has worked without authorization in the past, it does not in of itself render him/her ineligible to adjust status. I hope this helps. As you can see, your question involves a few different issues. This communication is intended as general immigration law information and does not constitute legal advice. This posting does not create an attorney-client relationship. Please reach out to an immigration lawyer directly for advice specific to your case.

I concur with Ms. McLaren. USCIS generally processes EADs within 90 days. I would suggest that she wait until she has her EAD to begin working.

Her EAD will be approved soon (if you filed all required paperwork and supporting documents). Although she won't be penalized if she accepts employment, technically, she is not allowed to work until she has a work permit or a green card. Your question - whether "will businesses accept her?" Answer - that's up to them.