H-1B Transfer or Fresh: Extremely Urgent

[pawankk1]

I have an H-1B visa till Aug 22, 2011. However, as my passport was expiring earlier my I-94 was valid till Jan 07, 2011. I got laid off on Oct 15, 2010. Subsequently, I applied for visa status change to B-2 on Dec 01, 2010. I received a reply from USCIS dated Mar 17, 2011 that my application for status change had been rejected due to incomplete filing of documents. I therefore filed a motion to reconsider their decision on Apr 07, 2011. Decision is still pending on this motion.

I now have a job offer from another company. My questions are:

1. What is my current status? Am I out of status?
2. Can my new employer file for an H-1 transfer? Or will it be a fresh H-1?
3. Will I have to leave the country for visa stamping? Do I need to go to my home country for visa stamping or would going to Canada/Mexico suffice?
4. Could I face issues during visa stamping at the Consulate/Embassy regarding my current visa status?
5. My new employer is concerned as I-94 is expired. But I had already filed for change of status change to B-2 almost 40 days prior to that and the motion to reconsider is still on. What do I tell my potential employer?
6. Any advice on how to tackle this situation would be hugely apppreciated. The new employer might reconsider their offer based on my visa status. How do I convince them otherwise? What steps do I need to take?

Thanks for your advice

[txh1b]

1. Yes and illegal too unless the MTR results in a positive outcome which is highly unlikely.A positive outcome retroactively reinstates your status but like I said unlikely.
2. H-1 transfer or fresh H1b mean the same. One is not subject to cap and one is. Every H1b is a new H1b. If applied for a transfer, you will not get I-94 or extension of stay. You need to leave the country ASAP and not accumulate more than 180 days of illegal stay. Consult with an attorney as you seem clueless.
3. Yes, you have to go to home country if your visa has expired. If your visa is valid, the law says it becomes invalid if you accumulate illegal stay. You should have never stayed past your I-94 date when you could have easily come back once you get a new job. Hind sight is 20/20 anyway. If only you had approached the forum earlier....
4. Sure could due to illegal stay past the denial and I-94. But does not at least result in a automatic ban before 180 days.
5. Your employer's concerns are valid. USCIS will not approve a EOS. You cannot begin working for the employer once the H1b is filed as well as your I-94 expired.
6. Have the employer file for a H1b transfer without EOS. Leave the country immediately. Get the approved I797 under premium processing, apply for a visa, come back.