Yes it does. If you do not reinstate and fall out of status, you will have to consulate process your H1B if your Sevis had been terminated prior to the application for h1B was accepted for processing.
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For USCIS to be able to change your status, you must be in valid status on September 30.
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Hi there- first- you need to prove you are going to be in status till Sept 30, or your H1 will not come with a I-94. This means you will need to go to your home country to get the H1 stamped before you can start working. Second - I am not sure what the RFE is asking for, but generally CPT should have no connection to the H1. Having written that, you really should ask an attorney who knows all your case details and has reviewed the RFE. Attorneys will offer second opinions on cases if you schedule a consultation.
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