L1 will expire on July with a approved H1B effetively on Oct

[gaojun1000]

My L1 visa will expire on July, and I've got the approval notice of my H1B petition. Right now my employer is working on filing the L1 extension for me. I have a couple of questions regarding my status between July and Oct. I hope someone can help me:

1. Since the L1 visa will expire on July, if my L1 extension gets rejected. Do I have to leave the country and reenter after Oct 1, by then I will get H1B visa? If that happens, does my employer have to terminate my employment for the period July to Oct?
2. If the L1 extension gets filed before July and is in pending status during the period July to Oct, can I legally stay?

Thanks.

[txh1b]

You hold legal status till the day of L1 I-94 if L1 extension is denied. During the period, if the H1b is pending, you can continue to remain in the US.

As there is a gap in status as per the data supplied to USCIS, the likelihood of a H1b COS getting approved is slim. It will be a H1b CP case instead. Even if the H1b COS is approved, if the L1 extension is denied, it is safe for you to not be illegal during tha gap but to return and get a H1b visa for entry during October.