Workers’ compensation is an essential security mechanism that offers benefits and medical care to employees who are injured or become sick while carrying out their job tasks. Determining the amount of the settlement is one of the most important components of workers’ compensation cases. The goal of settlements is to fairly compensate injured workers for all their damages, including medical bills, lost earnings, and rehabilitation fees.

Is the settlement in workers’ compensation determined by FCE? The Functional Capacity Evaluation (FCE) is a common evaluation tool used in conjunction with other considerations to determine the settlement amount. This article will explore the function of FCE in calculating workers’ compensation settlements.

What is FCE?

The FCE is a test used to evaluate your physical capability. A physical therapist carries out this test. Your capacity to perform tasks, including lifting, walking, reaching, carrying, standing, bending, and balancing, is typically tested during the four- to six-hour-long test. The FCE seeks to determine the amount of work you are capable of doing, specifically covering your level of sedentary (sitting) activity and the workload—mild, medium, or heavy.

The FCE is used to assess a candidate’s endurance, range of motion, strength, and tolerance for engaging in work-related activities. Depending on the FCE report received from your FCE, your doctor can decide to impose limits. It is possible to repeat these tests with variations in weight, intensity, speed, etc., until you are no longer able to physically carry out the work. Your doctor can evaluate whether your job restrictions are permanent with the use of the FCE.

FCE Role in Workers Compensation

FCE is essential to determine the workers’ compensation process, especially when figuring out how much to settle for. The following are some ways that FCE can affect the settlement:

Work Capacity Assessment

FCE assists in determining the degree to which injured workers can carry out their job responsibilities. It offers an unbiased evaluation of the person’s functional abilities and draws attention to any shortcomings or constraints. The worker’s ability to return to work and perform their duties will be determined, in large part, by this information. The evaluation may affect the worker’s capacity to perform their prior activities or execute alternative tasks, which may impact the settlement amount if it reveals severe limits.

Identifying Permanent Impairment

Permanent impairment or disability may arise from an accident in some circumstances. FCE aids in determining the severity of a permanent disability and how it affects a worker’s capacity for work. The assessment takes into account elements including discomfort, range of motion, strength, and general functional limits. The results of the FCE assist in determining the level of permanent impairment, which is an important consideration for determining the settlement amount.

Objective Evidence

FCE offers unbiased, standardized data that can either support or contradict the injured worker’s or the employer’s insurance company’s claims. The results of the evaluation provide verifiable proof of the employee’s physical abilities and constraints, which may be used to sway settlement negotiations. Both parties can more accurately assess the worker’s functional skills and decide on the appropriate settlement amount by using an FCE.

Supporting Return-to-Work Plans

FCE assists injured employees in creating suitable return-to-work plans. Based on the findings of the evaluation, healthcare professionals can create specialized rehabilitation plans and workplace modifications to assist the worker in gradually returning to their position. Modified tasks, workplace adjustments, or career training may be part of these programs. These plans are created using the FCE results to ensure they take the employee’s physical capabilities and limits into account. The effectiveness and accessibility of such plans may have an impact on the negotiation process.

Impact of Functional Capacity Assessments on Your Workers’ Compensation Claim

FCE’s findings can normally be utilized as evidence in the proceedings and may have an impact on your workers’ compensation claim. The results may be used to support an argument that you are not entitled to workers’ compensation payments if they demonstrate that you are capable of performing the duties of your job. If the outcomes demonstrate that you are unable to carry out the duties of your employment, you can use that evidence to justify continuing to receive workers’ compensation benefits.

Factors other than FCE for Work Comp Settlement

Although FCE is a key component in figuring out workers’ compensation settlements, it is not the only one. The settlement amount is further influenced by a number of additional factors, such as:

Medical Records

The injured worker’s medical records, which include diagnostic tests, treatment reports, and expert views, offer vital information about the severity of the injury, the required medical interventions, and the expected expenses associated with it.

Future Medical Costs

Future medical costs incurred as a result of the injury may potentially be included in settlement amounts. These costs may cover continuous medical care, prescription drugs, assistive technology, or any required procedures or therapies.

Wage Loss 

Another important aspect in establishing the settlement amount is the injured worker’s level of wage loss. The worker’s possible future wage loss is taken into account when determining the settlement amount if they are unable to work at their prior position or earn the same salary as before because of the injury.


Despite the fact that there are several elements involved in the settlement process, the fact is that determining settlement amounts for workers’ compensation by Functional Capacity Evaluation (FCE) cannot be undervalued. FCE offers vital information about a worker’s functional capabilities, job capacity, and restrictions, which has a big impact on settlement negotiations. Both parties can use it as factual proof to better understand the worker’s physical capabilities and guide their actions.

It must be kept in mind that FCE is not the only factor that determines settlement amounts. The total settlement amount also takes into account other elements such as supporting medical evidence, lost wages, and potential future medical costs. Even though FCE is important, it is just one piece of the puzzle that goes into figuring out settlements for workers’ compensation.

About the Author

Sara Benz

Hello, I'm Sara Benz, and I'm a certified Health & Beauty blog writer, and I've completed my master's degree from a US university, and I have 3 years of experience writing blog posts. I write on topics including Health & Beauty. My work has been published by various websites such as,,,, and more.

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