Ended up working & getting paid while on H4

[jagank2006]

My wife was on H4. We applied for her H1 transfer and travelled to India before we got the approval. Returned from India and she started working after we got the approved 797. My company's legal department just pointed out that she is considered to be working on H4. Change of status form was filed with her H1 petition. But, since she returned into US on H4 visa, her status gets updated back to H4. Inspite of H1 approval, she has been on H4 all these months.

Is that right? If so, what should someone do if they accidentally worked on H1 like this?

Thanks in advance.

-CHTN