TN1 being laid off - going to Canada for Christmas

My contract for my TN1 visa is until April 2009 however, I might be laid off within a month & I plan on going to Canada for Christmas. I would like to continue looking for another job at companies in the US. Do I need to return to Canada within 10days & apply for a B2 or can I stay in the US until April looking for another job?
What are the risks involved either way

Thank you for your help.

Once your employer lays you off or your employment is otherwise terminated, you must leave the US within a certain amount of time. You really shouldn't stay beyond that, because it is considered illegal, and you could be later barred from re-entering for any purpose.

There are quite a few other threads on the topic here, just have a search thru them for more info.

Well two obvious points, you cannot legally look for work in this situation. You can enter as B-1 to attend a specific pre-arranged interview but that's about it (although the regs seem to say you can't, but I've done it and so have various other people on here). How they fathom you're looking for work if you're already there is an interesting question, but technically it's illegal.

The other point is that if you've already been in the US six months, they may not let you in as a visitor until next year.

Since I'm currently employed it is legal for me to apply to companies now?
thx

You cannot legally look for work inside the US, whether you're employed or not already is irrelevant. The only people in non-immigrant categories who can look for work are people with EADs (as listed in the instructions for I-765).

Having said that I'm sure a lot of people do because it's hard to enforce if you're already there, but it is illegal.