From Murthy's Chat
Question : My six years of H1B expired. My I-485 was denied. I filed a Motion to Reopen. I have EAD. Is it invalid since I-485 is denied? Can I file for H1B seventh-year extension?
Answer : Generally, the BCIS will revoke the EAD when the I-485 has been denied. However, in a Memo the BCIS has taken the position that a person who is still on H1B status may file an H1B extension based on the LC or I-140 having been filed more than one year prior, even if the I-485 is denied. Since the H1B has expired, this, of course, poses a problem since the BCIS" present interpretation is not to allow the person to obtain an H1B extension nor a one-year extension with consular notification since they read the word "extension" literally. This issue may require some guidance, also.