Online degrees have increased in credibility, but some are more credible than others. The value of an online degree often revolves around how much a hiring manager knows about it.
Diploma mills bruised the reputation of online degrees by basically selling degrees to anyone willing to pay. The degrees were not backed by an education, leaving degree-holders unable to compete in the workplace, and making them virtually useless to companies.
Hiring managers are more likely to look at the person's qualifications and skill set, with the actual value of an online degree determined on a case-by-case basis. Managers who had bad experiences in the past are more likely to dismiss the value of an online degree, while managers overall consider online degree-holders and brick-and-mortar degree-holders equally, based on skills.