IANAL, and certainly “fuck you that’s why” is strongly in play here, but I do not believe this is legal.
Religious Discrimination & Work Situations
The law forbids discrimination when it comes to any aspect of employment, including hiring, firing, pay, job assignments, promotions, layoff, training, fringe benefits, and any other term or condition of employment.
Now, whether tying someone’s pay to their willingness to read and memorize a religious text runs afoul of this, I’m not entirely sure. But, it sure seems problematic to me, and I’d certainly file a complaint with the US EEOC and any relevant state authority.
Edit: This site (Freedom from Religion Foundation - never heard of it so I’m not vouching for its credibility) has some good information as well:
The EEOC Compliance Manual focuses on religious discrimination under Title VII of the Civil Rights Act of 1964 (“Title VII”), which protects against employment discrimination based on race, color, religion, sex, national origin, or protected activity. Title VII’s protections against religious discrimination apply equally to those who practice a non-theistic religion and to those who profess no religious belief. See, e.g., Torcaso v. Watkins , 367 U.S. 488, 495 (1961). Title VII itself applies to any employee, applicant, apprentice, or ex-employee of a covered employer, employment agency, or labor organization. Generally, all employers (private, state, and local government employers), employment agencies and labor organizations are covered under Title VII, with some exceptions, such as religious organizations and some employers with fewer than 15 employees. If a nonprofit organization’s purpose is, for instance, to promote Roman Catholicism or atheism, it may hire based on its purposes.
The EEOC manual on religious discrimination is divided into three main sections concerning employment decisions, harassment, and accommodations. Each is briefly summarized for informational purposes only.
Employment Decisions:
Title VII makes it generally illegal for an employer to refuse to interview, hire, or give a promotion to an individual based on that individual’s religion, or to treat an employee differently because of that employee’s religious beliefs, nonbeliefs or practices. This does not restrict an employer from making accommodations for an employee’s religious practices or belief. In fact, reasonable accommodations for religious practices are an EEOC requirement (discussed below). Employees may not be disciplined or discharged based on their religious beliefs or nonbeliefs, nor may they be rewarded based on religious considerations.
