Yes she can revert her status ... provided a timely H-1B extension was applied for her and she returns to the U.S. with an I-94 based on the new H-1B approval notice.
Is there any reason why your wife has to come back to H1 status?? Use the EAD, its the best thing your wife could get and apply for any job, rather then sticking to one employer.
rchandran 19 is correct. and you will be doing a new H1 (after using your EAD), if thats what you want to do. hence you will be subjected to visa cap.Just use EAD.
Your wife used the EAD and provided she is not working for previous H-1 employer then she is now EAD and no longer H-1. She needs to re-apply for her H-1 through another company if they hire her. If she is using the EAD to work on the side then filing H1 extension through her company who have the H-1 is enough to bring her back into status I-129 form i believe.
She (her employer) can apply for H1 with no problem, but whether she get H1 approval with or without I-94 is on full discretion of USCIS. If she did not get I-94, she has to travel and reenter the US before she work with H1.
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