What is a Functional Capacity Evaluation In A North Carolina Workers’ Compensation Case?

Damon Duncan By Damon Duncan, Board-Certified Specialist Updated June 3, 2026 3 min read
Workers' Compensation

The Short Answer

A Functional Capacity Evaluation (FCE) is a standardized test performed by a healthcare professional — typically an occupational therapist — to measure an injured worker's physical abilities and limitations after a workplace injury. The results are used to assign a permanent disability rating to the injured body part, which directly affects your workers' compensation benefits. While an FCE is considered more objective than self-reporting, it can still be used against you if the evaluator — who is paid by the insurance company — claims you didn't give maximum effort. Having an attorney in your corner before and during the FCE can protect you from unfair conclusions that could reduce your compensation.

A Functional Capacity Evaluation (also called a FCE) is a test performed by a physician or other health care professional to determine an injured worker’s ability to perform a job and to determine their limitations after having been injured on the job.  Healthcare professionals perform this standardized test to determine the worker’s functional impairment, assess the success of treatment, and to determine their ability to perform at a job in the present or future. However, completing a FCE without being represented by an attorney may put you and your case in a difficult situation. Let’s find out why.

StethoscopeA Functional Capacity Evaluation is considered more fair and accurate compared to the injured worker self-describing their impairments and limitations.  Some injured workers may attempt to fake or exaggerate their physical limitations or pain level when performing a specific function.  This more scientific examination is less subjective.

These test are usually performed by a trained professional, such as an occupational therapist.  Depending upon the type of injury, the test may take several hours.  The Functional Capacity Evaluation may include bending, lifting, walking, coordination, balance, and range of motion tests.  The therapist will evaluate the employee in several different positions and using various weights to understand the physical limitations.  The test results are usually sent to the injured worker’s treating physician in a formal written report.

The physician will determine and assign a disability rating based upon the physician’s assessment from treatment of the injured worker, the results of the Functional Capacity Evaluation and occupational guidelines from the federal and state governments.  This is usually designated by a percentage of disability to the particular body part that was injured.  An example would be a 15% permanent disability rating to an injured leg.

So how can a FCE hurt your case? Those who complete the FCE are paid by the insurance company. Some less than scrupulous FCE professionals will say that you did not provide maximal effort if you did not fully complete one of the tasks as requested. However, the reality is, you gave your full effort but were in too much pain or were physically unable to complete the task. An attorney can help ensure that improper conclusions from the FCE are used against you in your case. This can have a big impact on the value of your case and the compensation you receive moving forward.

With the permission of the North Carolina Industrial Commission, a Functional Capacity Evaluation may be reevaluated if the worker does not agree with the physician’s disability rating and believes the Functional Capacities Evaluation was improper or inaccurate.  An injured employee would consult with his or her attorney when making this decision.

Key Takeaways

  • An FCE measures your ability to bend, lift, walk, and perform other physical tasks, and the results are sent to your treating physician to assign a percentage disability rating to your injured body part.
  • The evaluator is paid by the insurance company, which creates a conflict of interest — some will claim you didn't give maximum effort even when pain or physical inability was the real reason you couldn't complete a task.
  • An unfair FCE conclusion can significantly lower the value of your workers' compensation case and reduce the benefits you receive going forward.
  • You have the right to challenge an FCE result — with permission from the North Carolina Industrial Commission, a reevaluation can be requested if you believe the original evaluation was improper or inaccurate.
  • Do not go into a Functional Capacity Evaluation without legal representation; an attorney can help ensure the results are interpreted fairly and that improper findings are challenged.
Damon Duncan

About the Author

Damon Duncan

Damon Duncan is a Board Certified consumer bankruptcy attorney at Duncan Law, LLP — helping North Carolina families stop collection calls, protect their property, and get a real fresh start through Chapter 7 and Chapter 13 bankruptcies. He is dedicated to guiding clients through the practical realities of financial recovery, including discharging overwhelming medical debt and halting wage garnishments. Duncan Law has served clients across North Carolina since 1996. In addition to the practice of law, Damon leverages his extensive understanding of debt and asset protection to teach Secured Transactions as a law professor at Elon University School of Law.

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