Valid I-94 but H1B extension denied

[kdave]

I just received a denial on my H1b extension however my I-94 is valid until Dec 2018. Am I allowed to stay and work until my I-94 is valid?  Also, if my employer's lawyer is filling a I-129 again can I work and stay during the pending period even though my I-94 is expired? Is there any limit to the stay period I have read 240 days but need more clarification on that? 

[JaiTrump]

Yes, you can stay till the end of I-94 validity and if an extension is applied, you can stay for another 240 days beyond I-94 expiry