H1B transfer denied. Previous employer I94 and I797 valid

[Surdy]

My H1B transfer got denied Oct 31st 2016. My attorney received the notice by post on Nov 4th. I have valid I94 and & 797 from previous employer until 2018. My employer is filing a new petition again in premium processing. 

Please advise on the following:

1. Am I out of status if I stop working for my current employer (for which my transfer was denied)?

2. My employer is filing a new petition in the mean time in the next couple of days in PP. Is this possible ?

3. I am assuming my 797 and I-94 have not been revoked, since the receipt number of my previous employer shows the status as 

   "Amended Notice Was Mailed' 

the date given on the status is the same date the approval was issued to me for my previous employer

4. How bad is my situation. Should I leave the country or wait for new petition to be filed so as to be able to work again?

[Reddi]

Until I-94 is valid irrespective of any employer there are no issues.  and also you can file N numbers of petitions and amendment but once it is approved any  one/more petitions  approved then you have to stick with only one employer.

Thanks 

[JoeF]

It seems you started working for the new employer with receipt. That means that you now ARE out of status. You have to stop working for the employer immediately.

A new petition from the employer is likely to not be approved with an I-94, meaning you will have to go abroad and come back with an H1 visa.

 

[Surdy]

16 hours ago, JoeF said:

It seems you started working for the new employer with receipt. That means that you now ARE out of status. You have to stop working for the employer immediately.

A new petition from the employer is likely to not be approved with an I-94, meaning you will have to go abroad and come back with an H1 visa.

 

I am currently not working for any employer. I am awaiting for my current for whom H1B was denied to file a new petition in PP.

Once that is done, will then start working.

What is the best advise you have for me in my current situation?

[JoeF]

You said: " 1. Am I out of status if I stop working for my current employer (for which my transfer was denied)? "

The bold part implies to me that you are currently working for the employer. Please clarify.

You are out of status, which means you have to wait for an H1 approval with an I-94 at the bottom to start working. If the approval comes without an I-94, you will have to leave and reenter with a valid H1 visa.