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H1B unstamped valid till 2018: out of status and unlawful presence

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What does it mean by out of status and unlawful presence in below non stamped but approved H1B visa case valid till 2018: 
1) Full time employed (how can one be out of status or unlawfully present when employed full time – can it be lack of projects?) 
2) Employer wanting to withdraw visa for lack of projects: 
2A) Within how many days a new H1B petition can be requested if original petition is withdrawn?
2B) Should one opt to travel back to home country and come back once projects are available? 
2C) Should one weigh other options like finding a new employer to file petition given time constraints? 

With option 2B one might risk the visa outcome in case of visa interview or any-other unprecedented events. 
With option 2C, I believe that is where the unlawful presence and out of status comes into picture, correct? 
Please share your advice! 

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On H1, you have to get paid all the time, even on bench without a project. If you don't get paid, you would be out of status.

If you get laid off, there is NO grace period for somebody on H1. You would be out of status fromt he day of layoff.

If you get laid off, the employer by law has to pay for your flight back to your home country if you wish to go back (not for dependents, though.)

Being unlawfully present is a whole different thing, a stay past the date on the I-94 would be an example.

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