Company forgot to file h1b transfer. I started working for them. How screwed am I?

[lahmie]

I'm Canadian, my company should've filed h1b transfer before I started in April, I neglected to triple check this, they did not do it, and they paid me for 2 pay periods. What can one do in this case?

Lawyers are advising a route I find highly risky, so would like advice here.