Q: I filed my Labor Certification application about one year ago but not quite 365 days yet. I am about 40 days short to reach 365 days. My H-1B 6-year limit will however reach in 30 days. Can I file the H-1B 7th-year extension before I reach 365 days of Labor Certification?
A: Currently, USCIS allows H-1B people to file 7th-year extension even before they reach 365 days on two conditions:
1) The starting date of extended H-1B 7th-year extension must not be before reaching 365 days. Accordingly, assuming that your 365 days will reach in more than one month, and you file now the 7th year extension with the starting date after one month.
2) At the time of your requested 7th-year extension, you should be in a valid H-1B status.
In your case, your current H-1B status will expire in 30 days and your 365 days of Labor Certification will not reach until 40 days or later. There will be approximately 10 days gap. Because of this gap, you will not be eligible to apply for the 7th-year extension. Only if these two requirements are met, you can file the 7th-year extension before one reaches 365 days.
http://www.greencardapply.com/question/question08/question08_0523.htm