What happens if I am filing a “Change in previously approved employment,” and an extension of stay for the beneficiary in H-1B classification, but I did not maintain a valid employer-employee relationship with the employee during the validity period of the previous petition?

Your extension petition will be denied if USCIS determines that you did not maintain a valid employer-employee relationship with the employee during the validity period of the previous petition. The only exception is if there is a compelling reason to approve the new petition. Such exceptions are limited and are made on a case-by-case basis.