Can new employer initiate h1b transfer with expired I797 petition?

Hello,

My current employer is interested in initiating h1b transfer but H1b approved petition (I797) expired in September 2022. Is it possible to transfer under cap-exempt ? I am working from India, I did my MS and worked in US before moving to India. I have never held H1b status, this is for first time stamping. Can someone advise me on this ?

Thanks

Yes, your employer can file cap-exempt petition based on your prior approval of H1B even if you never worked on H1B status.

Thank you. I have another query, my case is under 221g pending with the old employer. Do I have to withdraw the case before proceeding with the transfer ?

No you dont need to. Once you leave your current employer they will withdraw your petition.