H1B to H4 COS after 6 years max out


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Me and my wife are both on H1B.
 

My wife’s H1B is maxing out on 16th September 2020. Her I-140 is filed in premium last week and is pending approval.

Since there isn’t enough time remaining to receive the physical approval notice for I-140 and file H1B extension before 16th September, we filed a COS to H4, putting an effective date of 5th September. We don’t want to risk travel because of COVID and because of uncertainties in H4 stamping in India.

Questions:
1. Is it mandatory to resign from employment to make H4 COS effective or can she be legally on a Loss Of Pay or sabbatical with this pending COS application, without quitting, while waiting for I-140?

2. What would be the process to get back in proper status once I-140 is approved?

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