A functional capacity evaluation is a standardized test, usually performed by a physical or occupational therapist, that measures a person's physical abilities and work-related limitations after an injury or illness.

It goes beyond a routine medical exam by testing specific tasks such as lifting, carrying, pushing, pulling, standing, walking, bending, reaching, grip strength, and tolerance for repetitive movement. A report may classify capacity by demand level - such as sedentary, light, medium, or heavy work - and may state whether the person can return to a prior job safely, needs restrictions, or has reached maximum medical improvement. In practice, the results are often compared with job duties, treatment records, and a physician's opinions to assess disability, work restrictions, or future rehabilitation needs.

For an injury claim, the evaluation can affect the value of damages by documenting lost earning capacity, ongoing impairment, and the need for accommodations or additional care. Insurers may use it to challenge the severity of an injury, while injured people may rely on it to support claims for wage loss or permanent limitations.

In Missouri, an evaluation may matter in both workers' compensation and auto-injury cases. Missouri is an at-fault auto insurance state, with minimum liability coverage of 25/50/25 under Mo. Rev. Stat. § 303.190, so objective proof of functional loss can be critical when negotiating a settlement or proving diminished ability to work.