You were advised wrong.
From the NY State Department of Labor site.
It is unlawful to ask an applicant or employee whether he or she has ever been arrested or had a criminal accusation filed against him or her. It is also unlawful to inquire about youthful offender adjudications or sealed records. It is not unlawful to ask if a person has any currently pending arrests or accusations.
It is also not unlawful to inquire about convictions. See the Previous Conviction section below.
It is unlawful to require an individual to divulge information about the circumstances of an arrest or accusation no longer pending. In other words, the employer cannot demand information from the individual accused in order to “investigate” the circumstances behind an arrest.
The Correction Law provides that an employer may not refuse to hire, may not terminate an employee, and may not take an adverse employment action against an individual because that individual has been previously convicted of one or more criminal offenses, or because of a belief that a conviction record indicates a lack of "good moral character," unless there is a direct relationship between one or more of the previous criminal offenses and the specific employment sought or held, or employment of the individual would involve an unreasonable risk to property or to the safety or welfare of specific individuals or the general public.
In order to determine whether there is either a direct relationship or unreasonable risk, the employer must consider the following factors set forth in the Correction Law:
- The public policy of this State, as expressed in the Correction Law, to encourage the licensure and employment of persons previously convicted of one or more criminal offenses
- The specific duties and responsibilities necessarily related to the license or employment sought or held by the person
- The bearing, if any, the criminal offense or offenses for which the person was previously convicted will have on his fitness or ability to perform one or more such duties or responsibilities
- The time which has elapsed since the occurrence of the criminal offense or offenses
- The age of the person at the time of occurrence of the criminal offense or offenses
- The seriousness of the offense or offenses
- Any information produced by the person, or produced on his behalf, in regard to his rehabilitation and good conduct
- The legitimate interest of the public agency or private employer in protecting property, and the safety and welfare of specific individuals or the general public