Hey Samwill,
To answer your question, you are not considered implied status. Implied status is only given to those that applied for an extension on their workpermit BEFORE they expire. If you try applying for a renewal/extension of your current expired work permit, you will be rejected. You technically should stop working, and should apply for a visitors permit so that you can stay in canada while you work on getting your LMO and work permit again.
I say "technically" you should stop working as i know many people that continue to work, however it can work against you if the CIC see's that you have continued to work "illegally".
Next time, send in your work permit renewal form 2 weeks prior to your work permit expiry date and provide proof you have sent in your LMO, this will allow you to get implied status and avoid the whole issue of waiting for your LMO.