L2 to H4 change of status after petition of fresh H1 approved and effective

I was on L1B with my dependents on L2 since last year with I-94 valid till 2014. Last year my employer filled new H1 B petition for me but somehow applied nothing for my dependents. Last week I got approval of H1B which also says my status is changed from L1 to H1 w.e.f from last week. My questions are 1) Are my L2 dependents are out of status as of on today? 2) Can my employer now apply for Change of Status of L2 to H4 based on approved H1B petition and if yes, till the time we hear back from USICS, can my dependents stay in country legally on basis of current I-94 which is good through 2014.