L1 extension rejected.

[vickyteke]

Hi, I had an L1 visa under a blanket petition which is about to expire on 14th Sep 2011. There was an RFE on the extension which eventually got denied. Now my company is thinking of applying for an H1. My (and my family's) I-94 is valid till 2014.
So my question is:
1. Will my stay in the US be unlawful from 14th Sep 2011 until my H1 visa gets approved?
2. If H1 is rejected, can I still stay in the US until 2014?
3. Can I continue to work for my employer even after 14th Sep?

I would appreciate your response.
Thanks

[kabkaba]

Hi, I had an L1 visa under a blanket petition which is about to expire on 14th Sep 2011. There was an RFE on the extension which eventually got denied. Now my company is thinking of applying for an H1. My (and my family's) I-94 is valid till 2014.
So my question is:
1. Will my stay in the US be unlawful from 14th Sep 2011 until my H1 visa gets approved?
No
2. If H1 is rejected, can I still stay in the US until 2014?
Yes
3. Can I continue to work for my employer even after 14th Sep?
Yes, till I-94 date
I would appreciate your response.
Thanks

I don't understand why they filed the petition in the first place, if your I-94 was not expiring.