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H1B Extension Denied But Valid I 94

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HI my H1B extension was denied, I have latest I 797 valid till 12/16/2017, but I have valid I-94 till 05/15/2018. 


1. can i stay till 05/15 and can continue to work.

2. If i apply for H1B transfer, once i receive transfer receipt, can i travel back to india?? and  once transfer approved, can I get visa stamped based on new employer I797 and can come back to india.

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If the transfer is approved for new employer, you can continue to work for new employer without having to get visa stamped. You can do it even when the transfer is in progress. Visa stamp is only required for entry and if your prior stamp is valid, you can still travel on the old stamp. At port of entry you would show old visa and new h1B approval I797 notice. There is no need to explicitly go and get visa stamp.

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Unfortunately you have lost your H1-B status but you are authorized to stay until 5/15/2018. So you have appx 3 weeks before you will start accruing illegal stay. While you cannot work until a new H1-B petition is filed, you don't need to go out of US right away. Once you file a new H1-B ASAP and once you get the receipt number, you can start working. 

The following are possibilities:

(1) You get an approval with I-94 card attached with the approval notice. In that case, you don't need to leave for consular processing and can very well continue working.

(2) You get an approval without I-94 card attached with the approval notice. In that case, you need to leave US and attend US visa interview (for consular processing).

(3) Your H1-B gets denied again. In that case you need to pack your bags and leave for India.

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