h1 amendment denial

I got my visa(valid from Oct 15 2015 till Dec 29 2017) for employer A and NJ based client.In May 2016 my employer placed me in another project for Nashville Client. To work for Nashville client we applied amendment on May 1st (receipt Notice date) but after 3 weeks it was denied (May 19th). I was not aware of status and I continued at Nashville Client until Jan 31st 2017.Later I joined another project in DC. We applied new h1 amendment on April 10 2017. My employer is a subcontractor for primary vendor. Got RFE on Level 1 Wages August 4th 2017.Meanwhile my contract ended with DC client which was for 6 months (still REF is not resolved), at the same time my employer “A” has merged his company to “Z”.On Oct 18th DC Client had made my new employer (merged company Z) as primary vendor and extended contract for another 1 year Now “Z” employer wants to withdraw the level 1 wages RFE amendment & file new amendment with “Z” company name with Level 2 wages.Questions

  1. As I worked for Nashville client even after my amendment was denied what are consequences. Do I or my employer need to pay penalty or inform about working even after rejecting amendment.

  2. Can I legally withdraw and refile when for same client when there is a RFE and continue working for the same client with different contract.

  3. If any of above are considered as violations are they considered my employer violations or am I responsible for them

  4. From legal perspective, if I change employer and transfer my H1, will all the above complications go away or is it safe to continue with current employer till record is clean