If you're describing what I think you are the pilot valve (needle) is releasing air from the check valve that's leaking. The pilot valve decompress the cylinder so the motor isn't working against compressed air on the next cycle.
That switch has a basic on/off range that can be tweeked a few psi in either direction if necessary. The smaller spring assembly on the left in your photo is the "on" setting. Tighten to raise the point at which the motor comes on, tighten the larger one to raise the "off" setting. Do you have a pressure relief pop off valve ? Small brass fitting that might have a ring in it. It releases pressure if the switch fails. Also, there should be a tank moisture drain in the bottom of the air tank.Hi Flop,
Thanks — that is the kind of info I need! I am fairly new to these larger compressors with this type of pressure switch.
Thanks,
David