Spouse Laid off from work. Should we file AOS directly or H4 first?

[IT consultant1]

Hi 
I am primary applicant and eligible to file I-485 ( PD:- 10/2008). My wife is recently laid off from work , she was on H1b. 
So to be on Status after lay off, should we file AOS immediately or first we should file her COS ( from H1b to H4) and then file AOS once we receive H4 receipt notice?

 

Once we file AOS, then her status will be AOS pending status, under which status she can stay legally in the country. Her employer did not initiate the H1b cancel process yet and they are not strict on this. 

Not sure if this is the right approach to file AOS directly.

 

Any thoughts on this!!!!