Yes, it's gone.

If anything, having a relative might actually help you to get hired. (pure speculation on my part)
They sometimes even announce it on chief pilot's hot line, aka 'propaganda channel' , that such and such newhire is the son, daughter, brother, etc. of so and so.

Seems like they went from refusing to even consider relatives of current employees to actively encouraging, and one might say bragging about hiring relatives of our pilots.
I like it and think it was a good decision.

Ironically, according to the previoys anti-nepotism rules Jim Casey wouldn't be able to hire his brother George Casey to work as a bike messenger at the original American Messenger Company.

https://www.ups.com/content/cn/en/ab...tory/1929.html

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1907 - 1912
In 1907, there was a great need in America for private messenger and delivery services. To help meet this need, an enterprising 19-year-old, James E. ("Jim") Casey, borrowed 100 dollars from a friend and established the American Messenger Company in Seattle, Washington.
...
Jim and his partner, Claude Ryan ran the service from a humble office located under the sidewalk. Jim´s brother George and a handful of other teenagers were the company´s messengers.
...
In 1919 the company made its first expansion beyond Seattle to Oakland, California, and adopted its present name, United Parcel Service.