My H1-B expired in Aug-2020. I took a break from work.
I will be looking for a job starting Jan 2021. I understand that I don't need to go through the lottery again.
Any idea on how my new employer should approach my H1-B? How do I find out whether premium processing can be done?

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Not sure I understand. If your h1 is expired, and you took a ‘break’, are you still employed? what visa are you on from aug 2020 to whenever your new role is going to be?

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How’re you still in status? Or did you leave the US? I’d frame it as needing an h1b transfer or change of employer. Premium processing is still available as far as I know and it’s up to the company if they want to pay for it

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C1 and D 1 - I applied for H4-EAD in Aug-2020, but haven't heard from USCIS. So trying to see whether I can use my H1B instead. Lawyers said as long as my application (H4) is sent to USCIS before my visa expired I am fine.
I was laid off in july, few weeks before my maternity leave, so dint have the option of finding another job.

Is your H4 change of status approved?
If you get your h4 ead, it is really easy. You find an employer who is willing to file your h1b, start working for them while they file your h4 to h1b change of status.
It gets tricky if your H4 is still pending - your new employer may file for your h4 to h1b change of status, but uscis may need to adjudicate your h4 cos first and then your h4 to h1b cos.

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