Nonimmigrant H1B workers may not remain in H1B status longer than six years, unless they qualify for an exemption. Time spent outside the United States and unpaid time in the US does not count toward the six year limit, provided it can be documented. This time may be "recaptured" and added to the worker's final extension petition.
There are two ways to gain an exemption from the six year limit:
1. By being the beneficiary of a PERM application that has been on file for at least 365 days, whether still pending or approved; or,
2. By being the beneficiary of an approved I-140 petition, irrespective of how long the PERM had been pending prior to approval.
If an H1B qualifies for an exemption, then the six year limit no longer applies. Some people speak of "seventh year" or "eighth year" extensions. The number of years is irrelevant. Either the limit applies or it does not. If it does not, then it doesn't matter how many years are involved beyond six - the limit does not apply, period.
If the person qualifies on the basis of a PERM that was filed more than 365 days earlier, then he or she is entitled to extensions in increments of up to one year at a time. If the person qualifies on the basis of an approved I-140, then they may receive extensions in increments of up to three years at a time.
The actual length of the extension depends entirely upon the justification offered by the petitioner. For example, if the petitioner is a consulting company, and can only show a contract valid for six months, then the H1B extension will likely only be for six months - even though the beneficiary may be eligible to receive an extension up to three years.