L1-B to H1-B Transfer out of status question

[peeki]

I was working with ABC company with L1-B Visa(valid till Feb,2009) and i have applied for H1-B(with changes of status applied along with it) with another company XYZ in 2008.

I got the approval of my H1-B Visa in August (eff from Oct 1st 2008). But i traveled to India in mid-Sept and return back U.S on 30-Sept-2008 with my L1-B Visa of company ABC.

I was working with the old company ABC and again traveled back to India in Nov and returned in mid-Nov 2008 with same L1-B Visa.
Again we applied for Change of Status for same H1-B Petition in Jan.

I started working with new company based on the receipt notice(received by USICS) from USCIS. Later in April 2009, my changes of status applied by Company XYZ was rejected .

I went back to India and got the Stamping of H1-B with my old petition and came back. Am I in illegal status at any time? Please let me know if there is any issue with stay t in US at any point of time.

The reason we applied for change of status was due to below reason:

Since i traveled back and forth between US and India using my L1-B visa even after by H1-B got approved. My new company told me that my change of status changed from H1-B to L1-B due to re-entry to US with L1-B visa. So i need to apply for Change of status again with H1-B petition.

I wanted to know whether the change of status that got rejected in Apr, 2009 will have impact later for Green Card processing. Also will it have any impact on H1-B Transfer stating that i was out of status due to denial in April.

[shervin143]

You cannot work for the H1B employer with just the receipt notice. That is illegal. Unless the COS to H1B is approved, you are still in L1 status and cannot work for the H1B employer.

Since you returned back on september 30th, on Oct 1st your status would have changed to H1B. During that period, working for L1 employer when on H1B status is illegal too.