You assume much in your post, you have two choices retract or apologize.
TT
No, he shouldn't retract or apologize. If you don't care to know whether you are hiring an illegal, you are part of the problem. And you gave them money under the table on which they will never pay income taxes.
Maybe a few decades ago that would not be a big problem. Right now, it is a huge problem. Wake up. This invasion is tearing apart our nation.
I will take door number 3