This is all so freakin' unbelievable...
"They DO have days off, however, so conceivably they could have Bible study at those times, right? Or is the University is saying they can regulate the activities of an employee's day OFF? "
Well, the University owns the dormitories, too, so I suppose they could argue from that perspective as well.
The RAs job in a dorm is to be there to assist the residents, usually on a single floor or some other limited part of the dorm. Sometimes that assistance is personal, helping residents get assistance with psychological or other personal problems by referring them to appropriate facilities on campus.
I believe what the University is doing here is trying to make sure that, within the dorm where the RA is the RA, no student will feel that their otherwise legal behavior might be judged negatively by the RA. For example, if the RA is opposed, on religious grounds to homosexuality, a homosexual resident who knew that might not feel comfortable seeking advice...part of the RAs job.
Is the University right? I don't think so. The headline for this story sure wasn't right though.
When they're in the dorm, they're on duty. When they're outside the dorm, they're not bound by this rule.