H1b denied AOS in process

[fairyrose]

Hello Everyone,

I got a HIB rejection (Aug 3rd; not yet received the letter from USCIS) after an RFE (May 2012) notice . My employer is planning to reapply my H1B application by premium processing immediately once we receive the letter. My employer is pretty sure about the reason for denial (change in project, and different client names at the beginning and after the RFE request). The employer is sure that the new H1B will get approved (i really hope). I have a very good client and they have provided me with all the support letter. Also, my I-94 expired on 9th June 2012 and previous H1B expired 31st May 2012.

The issue is; I have filed for GC as a dependent on my husband's EB1 application 2 days back. I contacted my husband's lawyer and he suggested us to wait for the new H1b application result. He said if the new H1B is approved, I can work till I get an EAD (after which EAD kicks in) and Advance Parole AP (for EB1 application-I485 is current and EAD and AP should be received in 60 days). Once I receive the AP, I could travel to Canada or India and get H1B stamped. He also mentioned the 245K rule which should be used as an excuse for overstay upto 180 days.

My questions:

1) If I receive the H1B approval and extension of stay denied, will USCIS ask me to get it stamped immediately? I cant leave the country due to the ongoing GC process.

2) If my AP approved and I go to India/Cananda for stamping and I get denied, can I come back to USA on AP

3) Will AOS (245K rule) help me justify my stay?

3) My employer is suggesting that I continue working after he applies for new H1B through premium processing. Is it legal to do so when I have my H1 denial and expired I94? If I work, how does USCIS know about this? I am exploring the options.

I appreciate any help in this situation. I don't want to overstay but at the same time I don't want to stop the GC process.

Thanks a lot in advance.

[pontevecchio]

I will be brief. Once your AOS is on file you are legal to stay and up to 180 days of illegal work is condoned. Basically do not work till you get the EAD if the H1 is a problem. Answer me this. Is 3 months away from this H1job going to impact your life?