A compressor includes a shell, a first temperature sensor, a second temperature sensor, and a control module. The shell includes a motor, a compression mechanism and a lubricant sump. The first temperature sensor is at least partially disposed within the shell and configured to measure a first temperature of a lubricant at a first position. The second temperature sensor is at least partially disposed within the shell and configured to measure a second temperature of the lubricant at a second position that is vertically higher than the first position. The control module is in communication with the first and second temperature sensors and configured to determine a first difference between the first temperature and the second temperature. The control module is configured to determine whether a liquid level of the lubricant in the lubricant sump is below a predetermined level based on the first difference.