Apparently your COS was denied. Unless there was service error, you need to go outside the US to get the visa to return. the I-797 should have been accompanied by an explanation about the COS. If you think there was an error, you might be able to make a motion to reconsider. Make an appointment for an immigraton lawyer to review your documents, but do so quickly as you only have 30 days from the date of the decision to make a motion.
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No. You need to leave the US and reenter with a valid H-1B visa stamp in order to work for the H-1B employer.,
J Charles Ferrari Eng & Nishimura 213.622.2255 The statement above is general in nature and does not constitute legal advice, as not all the facts are known. You should retain an attorney to review all the facts specific to your case in order to receive advise specific to your case. The statement above does not create an attorney/client relationship. Answers on Avvo can only be general ones, as specific answers would require knowledge of all the facts. As such, they may or may not apply to the question.