H1b transfer questions


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I was at company A and filed transfer before my last H1b date . The new job starts 20 days later at company B. Company A is cap exempt , company B is claiming to be cap exempt based on my prior status. The new H1b is still pending right now. 

 

My questions : 
1. Is it ok to start working even if H1b is pending with 20 days of gap . 

2. Is the new h1b petition claim for cap exempt justified

3. What would happen if the H1b is denied for some reason. 

 

Thank you 

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