The switch has contacts that remain open until the liquid in the separator rises, causing the float to rise until the magnet contacts the switch.
When the magnet contacts the switch, the open contacts inside the switch close.
When the top float switch closes, the vacuum pump stops running until the bottom float opens and the cycle starts again.
The upper and lower floats interact as a latching circuit with the internal relay to release upon drain below the bottom float. The magnet in the float is to activate the switch within the stem.
Running pump with float wire connection removed from base other than to briefly troubleshoot can cause damage to the pump.
When working on Twin units, unplug parallel harness.