Seeking advice on getting an updated I-94

[Rahulkondapalli]

I am writing to you to seek your advice regarding my I-94 renewal.

I got my H1B Visa in October 2015 with a validity until October 2017. My
passport was valid only until December 2016 and I got my I-94 until
December 2016 at the Port of Entry. I approached the Department of Homeland
Security in Dallas in November 2016, when my I-94 was still valid and they
said that I can continue staying in USA as long as my I797 is valid. He
said that I would have to go out of the country only if i need an updated
I-94.

I did not need an updated I-94 till now and I continued staying in USA. My
I-94 has now expired and I have found a job which requires me to
change my employer. My new employer is filing a H1 transfer and he says
that it may not get processed as my I-94 is out of status.

Can you please let me know the options I have in the current situation,
considering the fact that my *I-94 is out of status* and *Visa stamping is
valid until October 2017*.

   1. Do I have to go to Canada/Mexico immediately before filing the
   transfer petition and get an updated I-94?
   2. Can I wait until my H1 Transfer petition is filed and get it approved
   and then go out of country and get my updated I-94?
   3. If I have to go out of country, is it better to go to Mexico instead
   of Canada as Mexico gives visa on arrival?

I highly appreciate your valuable suggestions on my current situation.
Thanks in advance.