As long as you are not out of status, your employer can petition for a new H1B, but if the last H1B was denied, you probably are out of status. If you are out of status, you will need to go home and apply for the B2 or any other non-immigrant visa. However, if your current H1B visa is still valid, you can apply to change to B2 status without going home first. You should consult with an immigration attorney regarding permanent residency or a green card based upon employment.
Answered on Oct 12th, 2011 at 10:11 PM