My employer filed for H1B in April 2012 and it has been approved with consular processing. My OPT expires July 2013. I did not travel anywhere outside of USA during H1 process and was never out of status.
Most likely the forms were filled out incorrectly and requested consular notification if there is not a status issue. If not and this is USCIS error, then contact the customer service number for a corrected approval notice.
There should not be a consular processing - unless the papers were not done right. Ask your attorney how this happened and what can be done now to remedy this situation. If you did not have an attorney - well, now you know why you should have, and can retain one tomorrow.
You should really speak to the attorney who filed the case to inquire what the next steps are to complete the H-1B visa process. This may be an issue of the form being marked incorrectly and requires an amendment to the petition as filed to convert to change of status processing.
You may be able to speak with your employer/the attorney your employer used to file an amended petition requesting change of status rather than consular processing.
Because your employer or their lawyer did not request change of status from F1 to H1. At the time of application, your employer has the option of requesting change of status(no need to travel outside) or requesting consular processing. If you do not want to travel outside of the US, you will need to file a new H-1 change of status application.
I would not want to speculate but maybe the start date is after your status expires, or maybe you are mis-reading it, etc. There are many possibilities. I would need to see the actual paperwork.
On the form I-129 which is used for the H-1B filing, there is a choice to request consulate processing or change of status. Perhaps your filing was made with a request for consular processing instead of a change of status.
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