talongganisa,
I saw your posting over the weekend. Sorry I haven't got the letter from my employer. But climax for my case turned out to be like this! My company attorney asked me to continue to work with my approved H1B ext. which is valid until 03/2005! This H1B was applied by my previous company which was merged with my current company last year. Based on the succession of interest clause, the H1B is still valid! Interesting thing is that since I didn't have the stamp on my passport for this H1, I switched to EAD and I returned to US using AP and EAD too. My company Attorney says that there are diverge opinion regarding continuation of work on EAD.
Before approaching my office, I contacted my local congressman's office for expedited process. A person from Cong. office got hold of a rep from TSC. It seems she said that "it is upto the employer to agree the I-765 receipt notice for the continuation of work!" It implies that it looks like INS is not going to emphasize on this if it is applied already! I asked the secretary repeatedly to make sure that thats what USCIS says! She replied that I can give her contact details to my Employer for verification of the discussion! So this is another turn.
From all these, I think you can do,
1. Continue to work with your H1 if you have one.
2. Just keep quiet and continue![As mountaindew says you can invoke rule 245 if any problem arises!]
3. Get a letter from your employer stating that your company will incur loss if you are unemployed. Importantly,the letter should state that you will be terminated on the expiry of EAD since you don't have authorization from USCIS to work.
4. Contact your local congressman. But beware that this rep. is not an anti imm. person![This advice is suggested even by Mr.Rajiv Khanna]
I was going through lot of stress on this ordeal! The above mentioned suggestions are simply of my own. Please use your own judgement or a lawyer's opinion on this. Best of luck!