Employees will see the - New - option in certain drop downs if they have the ability to create that type of record. To remove this the permission to create that type of record should be removed from the role or the Level should be set to View. This will also prevent employees with this role from being able to create records for that record type in all other ways.
Note: If the dropdown contains a custom list/record then the owner will always have permission to add new records so the new option will always show for that employee.
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