An H1B worker is able to extend his or her H1B status beyond the six year maximum if he or she is the beneficiary of an approved I-140 petition. What happens if that employee decides to change H1B employers and the original employer withdraws the approved I-140 they filed on behalf of the employee?
In such cases, the regulations provide that a petition is automatically revoked as soon as the employer files the withdrawal. If the employee's new H petition has not yet been approved, it will be denied on the basis that the employee is no longer eligible for extensions beyond six years. What about cases where the new H petition has been approved?
The USCIS California Service Center addressed this question at their quarterly stakeholders' meeting on August 10, 2011:
"Q. If a PERM or I-140 qualifying the beneficiary for an H-1B extension beyond six years is denied or expires prior to the end of the beneficiary’s 7th (or 8th or 9th) year of H-1B status, does the beneficiary continue to maintain H-1B status?
A. Yes."
Based on this question and answer, current USCIS policy provides that an H1B beneficiary will not lose his or her status if their underlying PERM or I-140 is denied or, presumably, is revoked. Of course, the H1B employee will not be eligible for further extensions unless and until a new PERM/I-140 is approved on his or her behalf.