Cap-Exempt H1 to Non Cap-Exempt H1B.

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I know that we need to apply a new H1 to change from Cap-exempt to non Cap-exempt. However i heard that there are two ways to do it , and would like to know the Pros and Cons of both:

a. One way is to get the H1 approved with I94 attached to it effective Oct 1st 2013 and move you status to H1 effective oct 1st2013. If we do this way you lose your current H1 status as of Oct 1st and at any cost whether you get into a job or not thro consultancy by oct 1st you have to come out of the payroll of your H1 company latest by oct 15 th .

b. The other way to go about is to just capture the H1 without I94 in this year quota and get the h1 approval effective oct 1st2013. But this approved h1 can be validated or put to use only if you go out of the country ( mother country if you had not had h1 before ) and get the H1b visa stamped ( which we do not approve at all or practice ) OR start marketing you around sep month and once you get a confirmed job ( whenever it happens ) and then using that confirmed job ask the USCICS to take back the approved H1 and inform them that this candidate is currently here on H1 status with a valid I94 and ask them to send us the amended H1 with I94 so that the candidate can start working on New H1B status .

It would be great if Anyone can shed some more light on the process 'b', as this would allow be very beneficial to me.

Thanks for the Help.

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