1. Company-A H1B I-94 valid till 23-July, 2010.
2. Company-A payroll run till 27-July, 2009
3. VISA transfer filed with Company-B, who is running payroll for me since 28-July, 2009.
4. Company-B H1B transfer DECLINED on 15-Jan-2010.
5. Company-B last payroll received on 31-Jan-2010

The RFE and the denial for the VISA seems because of lack of proper paperwork for Job description, Project SOW location and Client letter. I have a client project in hand.

Am I legally allowed to stay in the country and apply for H1B Transfer?
All employers wiling to do H1B transfers are asking for last 3 months of pay stub. But I have paystubs only till Jan 31, 2010.

Is there any time duration by which I need to file the H1B transfer with any other employer?