Employer Attempting To Contract Employees To View Illegal Sexual Content

I am a U.S. based contractor and my employer hires contracted labor to do remote work for them, usually AI training related content, but also content review and various other online projects that can be done remotely.

They are attempting to get contractors to agree to a new project in which we are told we may be exposed to illegal sexual content online. In order to participate and be paid for this project, we have to confirm we are comfortable being exposed to illegal content.

I am wondering if this is legal? Can an employer knowingly expose contractors to content that is illegal? If this is illegal on the part of my employer, how/where can I report the company?

Thank you.