First Rate Staffing Corp. (OTCQB: FRSI) reported revenue jumped 41.8% year over year in the first quarter to $7.0 million. The company attributed the increase in revenues to new clients added and organic growth.

Gross margin also improved, due to lower state and federal unemployment tax rates for the company’s staffing employees and increased revenues year over year in the first quarter.

First Rate Staffing provides recruiting and staffing services for temporary positions in light industrial, distribution center, assembly, and clerical businesses. The company is headquartered in Santa Fe Springs, Calif., with offices in Arizona and Nevada. It up-listed in March from the OTC Pink to the OTCQB under the same symbol.

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“California recently signed into law a bill to phase in a statewide $15-per-hour minimum wage by 2022, which will provide us a strong tailwind for growth,” CEO Cliff Blake said. “Looking ahead, we plan to support current clients who requested our services in additional locations by opening additional offices in two new states.”