Urgent - H4 to H1 out of status??

[PJinMI]

Hello all

Please help,

Jan 16th 2001 H1 approved from transfer from H4 to H1. She has H4 stamped till Oct 2002.
March 10th 2001 got Social Security.
Company says that it is ok by law to not pay for 90 days so not paying till April 16th.
Q) So what is her status right now?
Q) What happens if the company does not pay her after 16th of April? Do we need to file another application for H1 to H4?
Q) What happens in case of a layoff from her company?

Please explain, and thanks in advance.

pj