The term is acceptable when necessary in broad references to multiple races other than white: We will hire more people of color. Nine playwrights of color collaborated on the script.
Be aware, however, that many people of various races object to the term for various reasons, including that it lumps together into one monolithic group anyone who isn’t white. Be specific whenever possible by referring to, for instance, Black Americans, Chinese Americans, or members of the Seminole Tribe of Florida.
(Source: AP Stylebook)