H1B Transfer and H4 extension


I am working on H1B. I did H1B transfer with employer X and got approved till Jan 2025, employer X also did my wife H4 extension and got approved same as my H1B till Jan 2025. But I did not join Employer X .

I applied visa transfer with employer Y and got approval till Sept 2024. Currently I am working with employer Y.

Now I applied my wife H4 extension using my current employer Y approved i797 which is valued till Sept 2024. H4 extension is denied saying H4 is already active till Jan 2025.

Do I have any issue here because I did not join Employer X.

You shouldn’t have applied for H4 extension with employer Y as it was already approved. H4 status is tied to the primary H1B so as long as the primary maintain the status and H4 also has a valid I-94, no issues. Note that H4 status is not tied to the H1B employer.
So in your case, I would recommend to apply H4 extension with H1B in 2024 before the H1B expires. Till then H4 is all set.