Final answer:
A policy known as affirmative action made it legal to establish quotas for minority hiring, but has since evolved with rulings from the U.S. Supreme Court.
Step-by-step explanation:
The policy that made it legal to establish quotas for minority hiring is known as affirmative action. Affirmative action includes active efforts by governments or businesses that give special rights to minorities in hiring and promotion to compensate for past discrimination. Although originally these policies could include specific quotas, the U.S. Supreme Court has ruled against such state affirmative action laws, and today, affirmative action policies are typically implemented only by federal contractors following a discrimination lawsuit, enforced by the Equal Employment Opportunity Commission (EEOC). An increasingly diverse workforce and changing demographics in the United States have further highlighted the importance and evolution of policies for supporting workforce diversity.