Judge [Kimba] Wood was Bill Clinton’s second unsuccessful nominee for attorney general in 1993. Like Clinton’s previous nominee, Zoe Baird, Wood had hired an undocumented immigrant as a nanny; although, unlike Baird, she had paid the required taxes on the employee and had broken no laws (Wood employed the undocumented immigrant at a time when it was legal to do so), the threat of a repetition of the same controversy ultimately led to a withdrawal of the nomination. Janet Reno was later nominated and confirmed for the post.
-Wikipedia