H1B Transfer Denied. New H1B on I140 filed immediately which got approved.

[sarang82]

Hi 

My H1B Transfer was Denied. So my employer immediately filed H1B on I-140 which got approved and I got I797B. Now I need to visit India to get my visa stamped. 

I have below questions

1. When I consulted with my employer about my status, they said I am legally allowed to work until 180 days in US because my H1B (on I140) was filled immediately after denial. Is that correct?

 2. While filling DS-160, I came across below question. What should be the answer to this questions?

• Have you ever been unlawfully present, overstayed the amount of time granted by an immigration official or otherwise violated the terms of a U.S. visa?