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My friend was on L1 visa and visa was about to expire in June 2012 but i-94 was valid for another two years. He applied for H1B with other employer with change of status. His H1B is approved with change of status which is effective from October. His employer asked him to go back to home country as visa/petition was expired in June. They were not ready apply for extension due to high rejection rate. So he resigned and stayed back in US thinking that he had valid i-94 and started working with new employer from Oct 1st. Now he is continuing his job. Now the question is, I think he was out of status for 3 months. So can he work on H1B with cos? Will it be a problem in future when he go for stamping? Is he in illegal status now also as he was out of status in between? Please advice.