One of the new channels (think it was CBS) reported that basically there is nothing to this.

1. Because of Hillary's positions in Bills Staff the courts had already ruled the nepotism law does not apply to this type of position on the President's staff. it would apply to many other positions but not his personal staff.

2. He is not taking a salary. The only penalty for nepotism would be forfeiture of salary.

You may or may not like it, but there is precedence and no law is being broken.