H4 to H1B Transfer after having prior H1B


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My wife has applied for her H1B to H4 in June 2017 due to personal medical emergency. My company was filing my I-140. We thought that we can file her H4-EAD as soon as my I-140 is approved. She utilized 3 years in her H1B and quit her employment with this employer in US on the day we filed her H1B to H4. As there is uncertainty around H4-EAD as DHS is planning to rescind H4-EAD, we are wondering whether we can initiate her H1B. Please confirm what is the process to be followed for H4 to H1B transfer and please confirm whether she is eligible for out of cap as she had prior H1B and utilized only 3 years.

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