I94 expiry before I797 - Passport renewed - H1B transfer

Hi @Anil_Gupta i94 till Feb 2021 ; i797 till Aug 2021. Passport renewed.

I knew if I stay with current employer i need to exit and enter usa through CBP office or other options.

What happens if i change employer ? Does my transfer will get i797 date or i94 date? Do I need to exit and enter at that time ?

What are the positive and negative sides of switching employers in this situation?

You will get a new i94 with H1B transfer approval.

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Thank you @Anil_Gupta . I have different question now.

I got a interview attended and accepted the offer , shared all documents to file perm and transfer through employer B . Its been 10 days and they are still waiting on some documents . Meanwhile I got promise from current employer that they will take care of my perm so I said to employer B stating that I dont want to transfer and staying back.

I got a reply from their top level , stating this is not unacceptable and they have spent 5k dollars on attorney already. Do I need to worry on this or I can ignore?