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Arizona Illegal-Immigrant Hiring Law Upheld Thursday, February 7, 2008 9:00 PM Article Font Size A federal judge on Thursday upheld an Arizona law that prohibits businesses from knowingly hiring illegal immigrants and yanks the business licenses of those that do. U.S. District Judge Neil Wake dismissed a lawsuit filed by business groups that argued that federal immigration law severely restricts Arizona's ability to punish people who knowingly employ illegal immigrants. The law won approval last year from the Republican-majority Legislature and Democratic Gov. Janet Napolitano amid frustration over what they said were inadequate federal efforts to confront illegal immigration. Many cities across the country have passed similar measures, though some have been rejected in court.