A compressor includes a slide valve (24) having a passage that can be in fluid communication with a discharge plenum (22) and a suction plenum (20). The slide valve (24) position may be axially adjusted to control an amount of refrigerant that is compressed between a male rotor (14) and a female rotor (12) in the compressor based upon a system control scheme that determines capacity demand. The passage (28) is in fluid communication with the discharge plenum (22) and the suction plenum (20) when the slide valve is in a fully unloaded position or a partially unloaded position. A compressor housing blocks an opening to the passage when the slide valve (24) is in a fully loaded position. The location of the opening (36) in the slide valve determines what point in axial travel of the slide valve that fluid bypass begins.