Returning to work after a long gap of 16 months

Desi4ever

Registered Users (C)
I'm a LPR since Oct 04 and since I got married after I got my green card my wife needs to maintain her own legal status. Here is a history of her US immigration

She entered USA on a B2 visa in Apr 2005
Converted to H1-B before her I-94 expired
New I-94 issued valid till June 4, 2009
Started working from Oct 1, 2005
Worked as a consultant for a major US corp say X
Stopped working in November 2007 after delivering a baby
Employer neither revoked her H1-B nor kept her on payroll since November 2007. We understand there is an out-of-status issue.

Now X wants to hire her back as a consultant only if her H1-B is extended for additional 3 years. They don't want to hire her for just 3 months since her current I-94 will expire in June this year.

Can she start working for X now , get paystubs and then file an H1-B extension ?

If the above is not possible, can her employer apply for a new H1-B now and continue to work without leaving the country ?

Thanks and regards,
Desi4ever
 
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