Adjustment of status
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Adjustment of Status is the third step in the typical process of obtaining a US Green Card (permanent residence / immigration).
For most employment based green card aspirants, the first step is Labor Certification (LC) either through the older classical method or through the more recent PERM method.
Once LC is approved, the second step is an Immigration Visa petition (I-140). Once approved, the candidate's immigration is approved. However there is still a third step to actually obtaining the green card.
In case of the candidate already being in the US on a non-immigrant visa, the third step is "Adjustment of Status" (I-485). In this step, the key activities are detailed medical examination, finger printing, verification of all documentation etc. Once approved, the candidate's status on their passport is "adjusted" from non-immigrant to immigrant, hence the name.
It is important to note that if the individual being petitioned by an employer or family member lives outside of the United States, consular process is the applicable method of obtaining the lawful permanent resident status. Both consular process and adjustment of status within the United States have advantages and disadvantages. If you can choose between the two, it is important to compare consular process and adjustment of status before making a decision.
[edit] External Links
How Do I Become a Lawful Permanent Resident While in the United States? -- U.S. Citizenship and Immigration Services site