I have reviewed the recent lawsuit settlement where the USCIS has agreed to consider H-4 holders to be eligible to continue working while their timely filed EAD extension is pending. Unfortunately, the settlement seems to state that the right to work is only co-extensive with your I-94 duration. Therefore, you do not have the right to continue working for 180 days; only till your I-94 expires. While it is better than nothing, the settlement is not everything that we would like to see.
USCIS will interpret 8 CFR § 274a.13(d) such that certain H-4 nonimmigrants who timely file their I-765 EAD renewal applications and continue to have H-4 status beyond the expiration date of their EAD qualify for the automatic extension of their (c)(26)-based employment authorization and EADs. Such auto-extensions terminate the earlier of: the end date of the individual’s H-4 status as noted on Form I-94, the approval or denial of the Form I765 EAD renewal application, or 180 days from the “Card Expires” date on the face of the EAD.
The provisions for L-2 holders are satisfactory to begin employment, except you might need a state ID or driver's license to start working. But their extensions have the same issue as does the H-4 EAD auto-extension.
Let us see what the USCIS officially announces. The devil is in the details.