L1B extension denied, valid I-94

[BeingM]

Hello, 

My Current Status : 

1. L1B Visa : Expired on Dec-2019

2. PED : Dec-2019  , I-797 : Blanket Petition (Valid Indefinitely) 

3. I-94 : Valid until Jul-2020.

4. L1B Visa extension : Received RFE , RFE  response get denied on 20-Mar-20, detailed response still awaited from the employer. 

Q-1:  I understand valid I-94 allows me to stay in US  unit Jul-20, but Can I legally work as well ? 

Q-2 : Can I re-apply for L1B extension, based on my denial reason(will get the details soon), can someone plz. share the Re-apply process. 

Q-3 : Considering current Covid-19 situation, can I get additional extension , many news floating around , but nothing on USCIS website about  Visa extensions.  

My employer will get the detailed denial notice this week and then will have a discuss with them, but want to know what are my options based on current status ,so that I can discuss my case with them accordingly . Just want to avoid this Corona Phase as have to travel with my family. Thanks a lot in advance !!