The petition is the second step in the process of obtaining an employment-based Green Card. It is often also called the I-140, because this is the form number used to file the petition.
Basically, in a petition, the employer informs USCIS "I would like to hire a non-American. I have proof that this person is qualified for the job, and I also have proof that there is no American worker available. Please allow this person to apply for a Green Card." In other words, the employer applies for permission for you to apply for a Green Card.
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