Change from TD to H1B

I'm in the US on a TN visa and my wife is on a TD visa. She is wanting to go back to work and as such has a couple of interviews set up in the next couple of weeks. Provided she is provided with a job offer what is the process that needs to be followed to change her status to H1B. I should note that the locations are non-profit and are exempt from the H1B cap.

My understanding is that the employer would need to file an I-129 and then when this is filed my wife would need to file an I-539 for a change of status. Is this correct? Does she need to file the I-539 after the H1B (I-129) is approved for can she file the I-539 as soon as the I-129 is filed?

Thanks for your help.

She does not file I-539, that is for a change to a non-working status, or a change sometime after I-129 approval.

The employer will file I-129 (after filing LCA) and that will include a change of status from TD to H1. The instant the I-129 is approved, and the Approval I-797 is sent, with an I-94 attached, she will be able to work.

She will not, regardless of what any HR or lawyer will say, need to go to Canada or consulate or anywhere else to get it activated.

If for some reason, she gets an approval without an I-94 attached, then she would need to formally activate it. But filing I-539 would not be the best way to do this, as it could take months for the change (and she could not work in meantime). The thing to do at that point would be to head out of US and return, activating the H1 at any POE. Still no needto go to a consulate.

Great thanks for the information. The only thing I'm wondering about is if the I-94 isn't attached you mention that to get it would be to leave the country at any port of entry. We are currently living in Texas, but are originally from Canada. Would we be able to go to the Mexican border to get the I-94? Is there any other way she would be able to get the I-94 other than leaving the country? (we don't speak Spanish and crossing the Mexican border just to come right back makes me a little nervous).

As I said, the employer will file I-129 requesting change of status. In the unusual event that for some reason the I-94 was not granted, she would need to change status, and that can only be done by either filing I-539, which will take several months, or leaving the country.

You suggested mexico, not me. But, I'm quite sure she could handle the border, you don''t have to go if it makes you nervous.
If not, then fly to canada or mexico or the bahamas.

Awesome. Thanks, I just thought I'd ask incase there was another way. I appreciate your help.