h4-h1 issues

[mazkaz]

Hi,

I came to the US in 2011 on a H4 visa valid until Sep 2012. An employer agreed to file my H1b and the H1b petition was approved on Jan 28th 2012. The employer now says that the position which I was hired to has been filled and they do not have choice but cancel my H1b visa. They have given me a grace period of 1 week, so that I can switch back to my h4 visa, which i believe is pretty straight forward because no pay stubs have been generated yet.

My question is.

1. Could i ask my employer to wait for 4 weeks before I can transfer the H1b to another employer.

2. Change to H4 right away.

3. Am I exempt from the H1b quota.

Any suggestions please. In a complicated situation really.