I-539 for B2 COS is denied and I94 for H1 is still valid for 2 years?

As long as the person holding the H-1B is still working for the proper company, and will continue working for that company, a B-2 change of status denial has no effect on status. On the other hand, if the person has already left the organization and is solely depending upon the B-2 change of status, that person is out of status and the count begins for unlawful presence to kick in. Due to the limitations of the Lawyers.com Forums, Alan Lee, Esq.'s (the "Firm") participation in responding to questions posted herein does not constitute legal advice, nor legal representation of the person or entity posting a question. No Attorney/Client relationship is or shall be construed to be created hereby. The information provided herein by the Firm is general, and requires that the poster obtain specific legal advice from an attorney. The poster shall not rely upon the information provided herein as legal advice nor as the basis for making any decisions of legal consequence.