A compressor may include a shell, first and second scroll members, and a first annular seal. The first scroll member may be supported within the shell and may include a first end plate having a first spiral wrap extending from a first surface thereof and a second surface having an annular groove therein. The annular groove may include a first portion having a first depth and a second portion disposed radially inwardly relative to the first portion and having a second depth that is less than the first depth. The second scroll member may be supported within the shell and may include a second end plate having a second spiral wrap extending therefrom and meshingly engaged with the first spiral wrap. The first annular seal may be positioned within the annular groove.