I recently went to get my license renewed and showed my I797 as the proof. I havent received the license and it has been more than 4 weeks. I called the DMV and they told that they haven't got authorization from Homeland Security for my legal presence. I checked with USCIS only to know that I can't get that information (privacy issue) since my H1B was filed by my employer's attorney.
You would be best advised to address this issue with your employer's immigration attorney. The attorney may be able to provide additional information to satisfy the DMV or speak with DHS about providing the required authorization.
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Laws regarding the issuance of driver's licenses intersect federal and state law. Each state has specific rules regarding when it will issue a driver's license and what you need to prove you can obtain a license. You will want to check your state's laws to see what you must prove to be issued a license and what documents will satisfy proof for each item that must be proven.
You should make an infopass appointment at your local immigration office. It sounds like the SAVE system may need to be updated. Save is the Systematic Alien Verification for Entitlements Program that helps federal, state and local benefit-issuing agencies, institutions, and licensing agencies determine the immigration status of benefit applicants so only those entitled to benefits receive them. You can make an infopass appointment at https://infopass.uscis.gov/
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