I have been working for a company and with a recent promotion, I have found out that the head of the company's spouse's law firm is outside legal counsel for the company. First, is this a conflict of interest, and second, if not, why would this company pay the law firm through a third party administrator? This may or may not be perfectly legal, it just seems kind of unethical and I'm not sure I want to work for a company like this. If something illegal is going on, who can I report it to?

I am not sure how this would be unethical. Have you browsed through the information in LawInfo's Free Legal Resource Center to learn more about your issue yet? See: http://www.lawinfo.com/consumer.html and http://resources.lawinfo.com/en/index.html. You can certainly try to speak to a lawyer to determine what legal options may be available. In the meantime, you may be able to learn more on your own. Search the "Free Legal Resources" tab, or browse the Consumer Resources. Good luck.