From the NBC "DOND" contestant application (the ten-page one):
Neither you nor any member of your immediate family or anyone living in your household may be or have been within the last two (2) years employees, officers, directors or agents of any of the following:
i. NBC Universal, Inc. (“NBC”), Endemol USA Inc., Lock and Key Productions, Coconunu Productions, Skycastle Entertainment Company/Sullivan Compliance Company or any of their respective parent, subsidiary or affiliated companies;
ii. Any television station or channel, cable network or satellite network that airs or that may the Program;
iii. Any person or entity involved in the development, production or distribution or other exploitation of the Program;
iv. Any sponsor of the Program or its advertising agency; or
v. Any person or entity supplying services or prizes the Program.
In addition, the Producers reserve the right, but are not obligated, to disqualify or render ineligible any person who the Producers determine, in their sole discretion, is sufficiently connected with the production, administration, casting, judging or distribution of the Program such that his or her participation in the Program could create the appearance of impropriety. Such decisions shall be final and are not subject to challenge or appeal.
If Nunzio is not a member of the immediate family or lives in the household of the contestant, no one's violating anything--but that's when that last paragraph might kick in.